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Which of the Following Observations Concerning Debt Financing Is NOT

Question 150

Multiple Choice

Which of the following observations concerning debt financing is NOT TRUE?


A) The cost of borrowing money can be a real financial burden.
B) The impact of interest charges on prices is negligible.
C) Most commercial banks are conservative.
D) The greater the risk that the lender takes on, the greater the interest rate charge will be.
E) It might involve a loan from a commercial bank or the use of corporate bonds.

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