Question
Which of the following is NOT a disadvantage of debt capital? The firm directly owns financial resources Making the interest and principal payments on debt
Which of the following is NOT a disadvantage of debt capital?
The firm directly owns financial resources
Making the interest and principal payments on debt are legal and binding constraint for the firm.
The firms must file for bankruptcy if failed to repay the loan installments.
The ownership is not diluted in debt financing and the firms have majority of control over their business decisions.
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Fundamentals Of Investments Valuation And Management
Authors: Bradford D Jordan, Thomas W. Miller Jr., Steven D. Dolvin
6th Edition
0073530719, 9780073530710
