The benefits of debt to the corporation include all of the following except:

Question

Quizplus · Accepted Answer

While debt may provide benefits such as tax-deductible interest payments, fixed obligations, and generally lower overall costs than equity, it does not necessarily increase stock value when used heavily. In fact, excessive debt can lead to higher risk and lower stock value, as investors may be concerned about the corporation's ability to generate enough cash flows to meet its debt obligations.

The Benefits of Debt to the Corporation Include All of the Following