The cost of debt financing results from ________. A) the decreased pr
The cost of debt financing results from ________.
A) the decreased probability of bankruptcy caused by debt obligations
B) the risk–return trade-off associated with ownership of a firm
C) the costs associated with lenders having less information about a firm’s prospects than investors and managers
D) the agency costs of the lenders’ monitoring and controlling a firm’s actions
ANSWER
D
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