Corporate and personal leverage may not be perfect substitutes because:
A) II only
B) I and III
C) II and III
D) I and II
I.The tax system is very complex and no conclusions can be drawn
II.Investors must borrow at higher interest rates than corporations
III.Investors are not protected by unlimited liability

Question

Quizplus · Accepted Answer

The Answer of Corporate and personal leverage may not be perfect substitutes because:
A) II only
B) I and III
C) II and III
D) I and II
I.The tax system is very complex and no conclusions can be drawn
II.Investors must borrow at higher interest rates than corporations
III.Investors are not protected by unlimited liability

Corporate and Personal Leverage May Not Be Perfect Substitutes Because