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From the Viewpoint of Bank Shareholders, What Is(are) the Advantage(s)

Question 57

Multiple Choice

From the viewpoint of bank shareholders, what is(are) the advantage(s) of using debt to finance assets?


A) using debt reduces bank financial risk
B) interest on debt is tax deductible
C) using debt prevents the dilution of ownership
D) a and b
E) b and c

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