x

Subject - Business Ethics:

Corporate Finance

MCQ - 60-2165

Question:

Which of the following is the principal advantage of high debt financing?

  1. Tax savings
  2. Low Bankruptcy costs
  3. Minimum financial risk
  4. Low Bankruptcy costs

Correct Answer: A

Explanation:

According to M & M model, debt financing increases the value of firm due to tax shield

Record Performance

80 MCQ for effective preparation of the test of Corporate Finance of Business Ethics section.

Read the MCQ statement: Which of the following is the principal advantage of high debt financing? , keenly and apply the method you have learn through the video lessons for Corporate Finance to give the answer. Record your answer and check its correct answer and video explanation for MCQ No. 60-2165.

How to Answer

Solve the question for MCQ No. and decide which option (A through D/E) is the best choice to answer the MCQ, then click/tap the blue button to view the correct answer and it explanation.

Share This Page