Which of the following concerns would cause debt financing


Which of the following concerns wouid cause debt financing to be more attractive than equity financing, according to class discussions?

A. the underinvestment problem

B. the problem that the firm may lose its customers due to its capital structure

C. the debt expropriation problem where the risk is shifted to the debt holder.

D. The agency conflicts problem resulting from too much cash flow.

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Financial Management: Which of the following concerns would cause debt financing
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