Question
Which of the reasons for companies to use debt to finance projects are NOT true? A. Using debt increases the free cash flow for shareholders
Which of the reasons for companies to use debt to finance projects are NOT true?
| A. | Using debt increases the free cash flow for shareholders of the firm. | |
| B. | The interest tax shield results in more total free cash flow for all investors | |
| C. | All of the reasons are true. | |
| D. | Debt often has a lower cost of capital than equity. |
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Fundamentals Of Corporate Finance
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
5th Edition
1119795435, 978-1119795438
