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Which of the following statements about debt is TRUE?

Diamondlove

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Which of the following statements about debt is TRUE?

Which of the following statements about debt is TRUE?

▸ Increasing debt increases the firm's flexibility.

▸ As debt increases, distress costs decrease.

▸ Using debt causes a loss of ownership by the firm.

▸ Using debt allows the firm to earn money using someone else's money.

▸ As the level of debt increases, the firm's credit rating begins to matter less.

Textbook

Corporate Finance Online

Corporate Finance Online

Edition: 2^nd

Authors: Eakins, McNally

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Shuqin

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