The Risk of Debt Capital Is Less Than That of Other

Multiple Choice

The risk of debt capital is less than that of other long-term contributors of capital because

A) it has far stronger legal pressure against the company to make payment than do preferred and common stockholders.
B) it has a higher priority of claim against any earnings or assets available for payment.
C) the tax-deductibility of interest payments lowers the debt cost to the firm substantially.
D) of all of the above.