From a company's perspective, which of the following is the riskiest mix of long-term funding?

Question

Quizplus · Accepted Answer

100% debt is the riskiest mix of long-term funding as it means the company is relying solely on borrowed funds and any external factors that may impact the ability to repay the debt could result in financial distress or even bankruptcy. Additionally, servicing the debt requires regular interest payments which can be a significant burden on the company's cash flows.

From a Company's Perspective, Which of the Following Is the Riskiest