An advantage of debt financing is that:
A) it does not require firms to make fixed payments.
B) it does not require firms to sell stock to new investors to gain additional funds.
C) it is less risky than equity financing.
D) it is more flexible than equity financing.

Question

Quizplus · Accepted Answer

Debt financing allows firms to raise capital without diluting ownership by selling stock to new investors.

An Advantage of Debt Financing Is That