Which of these is a disadvantage to shareholders of using long-term debt rather than equity?
A) Interest is tax deductible
B) Interest payments must be made on time regardless of a reduction in profitability
C) Lenders do not share in excess profits
D) Lenders do not have voting rights

Question

Quizplus · Accepted Answer

The Answer of Which of these is a disadvantage to shareholders of using long-term debt rather than equity?
A) Interest is tax deductible
B) Interest payments must be made on time regardless of a reduction in profitability
C) Lenders do not share in excess profits
D) Lenders do not have voting rights

Which of These Is a Disadvantage to Shareholders of Using