Debt is generally the least expensive source of capital, Financial Management

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Debt is generally the least expensive source of capital

Debt is generally the least expensive source of capital. This is primarily due to

A. fixed interest payments.

B. its position in the priority of claims on assets and earnings in the event of liquidation.

C. the tax deductibility of interest payments.

D. the secured nature of a debt obligation.

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Financial Management: Debt is generally the least expensive source of capital

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Financial Management: Debt is generally the least expensive source of capital

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