Commercial paper advantages include

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Reference no: EM131980844

1. Commercial paper’s advantages include that it

a. can be purchased without commission costs

b. is readily available as a financing source to most businesses

c. provides a line of credit at a preset fixed rate that can be used as needed

d. typically is cheaper than a commercial bank loan

2. Which statement is CORRECT?

a) Higher levels of debt will result in higher Net Income as long as the cost of debt is less than the Basic Earning Power

b) Financial Risk is the additional risk resulting from the use of equity.

c) The costs of debt and equity will both rise as the level of debt increases.

d) Higher levels of debt lead to greater business risk

Reference no: EM131980844

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