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VWQ is a company in the services sector that operates out of leased premises. VWQ has a current gearing level of 70% and the company

VWQ is a company in the services sector that operates out of leased premises. VWQ has a current gearing level of 70% and the company is looking to raise new debt finance. An analysis of VWQ's past performance indicates a significant amount of volatility in the level of profits. Which three of the following are risks to VWQ of raising new debt finance? Solution A.Possible breaches of conditions attached to existing debt finance. B.New investors voting against the board of directors. C.Inability to service existing and new debt finance. D.Paying a high interest rate on the new debt finance. E.Seizure of assets on default of unsecured debt

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