Which of the Following Is NOT a Reason Why Debt

Multiple Choice

Which of the following is NOT a reason why debt capital is considered to be the least risky source of capital?

A) It does not normally have to be repaid at a specific future date.
B) It has a strong legal position.
C) It has a high priority claim against assets and earnings.
D) It is a low cost source of capital because interest payments are tax deductible.