Nature of long-term debt in firm capital structure

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Reference no: EM131558793

The inexpensive nature of long -term debt in a firm's capital structure is due to the fact that

a) equity capital has a fixed return

b) payments of interest on debt are tax deductibe

c) the equity holders are the true owners of the firm

d) equity holders have a higher position in the priority of claims

Reference no: EM131558793

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