Multiple Choice
Which of the following is true regarding subordinated debt?
A) Subordinated debt claims come before the claims of depositors.
B) Principal payments are not mandatory.
C) Transaction costs on issuing new debt are lower than when issuing new equity.
D) Interest payments on subordinated debt are tax-deductible.
E) New subordinated debt dilutes existing shareholder equity.
Correct Answer:
Verified
Correct Answer:
Verified
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