Debt financing Multiple Choice   is always a better choice than equity financing because of the tax deductibility of interest expense.   is only used by emerging growth companies with no access to equity capital.   is one option available to both established and emerging companies.   is only used by established growth companies because they are able to secure a low interest rate.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Debt financing

Multiple Choice
  •  
    is always a better choice than equity financing because of the tax deductibility of interest expense.
  •  
    is only used by emerging growth companies with no access to equity capital.
  •  
    is one option available to both established and emerging companies.
  •  
    is only used by established growth companies because they are able to secure a low interest rate.
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