Which One of These Should Be the Primary Appeal of Unused

Multiple Choice

Which one of these should be the primary appeal of unused debt capacity to a bidder firm?

A) Ability to borrow additional funds to increase management bonuses
B) Source of funding for negative net present value projects
C) Increased funding for the payment of unsustainable dividends
D) Tax savings resulting from increased interest expense on additional debt
E) Debt funding for a golden parachute