Companies with a great deal of long-term debt would rate fairly high in ____ risk.

Name: Companies with a great deal of long-term debt would rate fairly high in ____ risk.
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Question

Quizplus · Accepted Answer

Long-term debt increases a company's financial risk as it creates an obligation for the firm to make fixed payments over an extended period. Hence, companies with significant long-term debt would rate relatively high in financial risk.

Companies with a Great Deal of Long-Term Debt Would Rate