Advantages of privately placing debt include all of the following EXCEPT A. speed. B. reduced placement costs. C. restrictive covenants. D. flexibility.

3. Discuss the advantages and disadvantages of both debt and equity finance.

Which of the following is not an advantage of debt financing? Group of answer choices Shareholder control is not affected. Interest payments are cheaper than dividend payments. The return on shareholder’s equity may be higher. Interest is deductible from income for tax purposes.

Two advantages that debt financing has over financing from the issue of shares are:Group of answer choicesInterest expense can be claimed as a tax deduction and there is no dilution in share ownership.There is more profit available to pay dividends to shareholders and dividends can be claimed as a tax deduction.The principal must be paid back at maturity and dividends can be paid to shareholders because earnings per share increases.Interest payments on outstanding debt are required periodically and the interest expense can be claimed as a tax deduction.

Advantages of debt financing over equity financing include that ______. (Check all that apply.)Multiple select question.interest payments are optionalstockholders' control will not be diluteddebt financing does not require repaymentsinterest payments are tax deductible

Which of the following types of companies will most benefit from debtadding the discipline?a. Conservatively financed (very little debt), privately owned businessesb. Conservatively financed, publicly traded companies, with stocks held bymillions of investors, none of whom hold a large percent of the stock.c. Conservatively financed, publicly traded companies, with an activist andprimarily institutional holdings