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Which ONE of the following statements IS true about debt finance? a. For the lender, the only return on a deep discount bond is the
Which ONE of the following statements IS true about debt finance?
a.
For the lender, the only return on a deep discount bond is the capital gain, as no interest is charged.
b.
Issuing debt dilutes the control exercised by existing shareholders.
c.
Taxation increases the cost of debt finance for the issuing company.
d.
Lenders generally require a lower return on their investment compared to shareholders.
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