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    Principles of Corporate Finance Study Set 4
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    Exam 10: Leverage and Capital Structure
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    Debt Capital Has a Lower Risk Because the Lenders Have
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Debt Capital Has a Lower Risk Because the Lenders Have

Question 30

Question 30

True/False

Debt capital has a lower risk because the lenders have far stronger legal pressure against the company to make payment than do preferred or common stockholders.

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