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The Disadvantages of Debt to the Corporation Include All but Which

Question 102

Multiple Choice

The disadvantages of debt to the corporation include all but which of the following?


A) Debt may have to be paid back with "cheaper" dollars.
B) Interest and principal payments must be met regardless of performance results.
C) Indenture agreements may place burdensome restrictions on the firm.
D) Too much debt may depress the firm's stock price.

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