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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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