Debt Is Often a More Attractive Vehicle for Financing Long-

Debt is often a more attractive vehicle for financing long- term investments than issuing more stock for which of the following reasons? 1. Debt is less risky than common stock.
2) Debt is not traded on exchanges.
3) Interest payments are tax deductible and dividend payments are not.
4) Ownership rights are kept by the present stockholders.

A) 1 and 2
B) 3 and 4
C) 2 and 4
D) 1 and 3

Correct Answer:

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