When a firm has no debt, then such a firm is known as
I.an unlevered firm;
II.a levered firm;
III.an all-equity firm
A)I only
B)II only
C)III only
D)I and III only

Question

Quizplus · Accepted Answer

An unlevered firm is a firm with no debt, so option I is correct. An all-equity firm is also a firm with no debt, so option III is also correct. Option II is incorrect as it refers to a firm with debt, so the correct answer is choice letter D, I and III only.

When a Firm Has No Debt, Then Such a Firm