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From the Point of View of the Business,which of These

Question 43

Multiple Choice

From the point of view of the business,which of these is an advantage of using long-term debt rather than equity in financing?
I.It does not dilute the control of existing owners
II.Debt holders have priority over owners if the business is wound up
III.Interest payments are a fixed commitment regardless of profits
IV Interest is tax deductible


A) I,II,III,IV
B) I,IV
C) I,II,IV
D) I

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