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Which of the Following Is a Disadvantage to Shareholders of Using

Question 30

Multiple Choice

Which of the following is a disadvantage to shareholders of using long-term debt rather than equity?


A) Interest is tax deductible.
B) Lenders do not have voting rights.
C) Lenders do not share in excess profits.
D) Interest payments must be made on time regardless of a reduction in profitability.

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