Although the Use of Debt Provides Tax Benefits to the Firm

Although the use of debt provides tax benefits to the firm, debt also puts pressure on the firm to

A) meet interest and principal payments, which if not met can put the company into financial distress.
B) make dividend payments, which if not met can put the company into financial distress.
C) make dividend payments, which if not met can put the company into financial distress; and to meet both interest and dividend payments, which when met increase the firm cash flow.
D) meet both interest and dividend payments, which when met increase the firm cash flow; and to meet increased tax payments, thereby increasing firm value.