A recent study shows that privately held firms use less financial leverage and enjoy lower costs of debt than publicly traded firms.

Question

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The statement is true according to a recent study. Privately held firms typically have less debt financing and may have better relationships with lenders, resulting in lower costs of debt. Publicly traded firms may have higher debt levels and be subject to greater scrutiny and volatility in the markets, leading to higher costs of debt.

A Recent Study Shows That Privately Held Firms Use Less