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Q. Flexibility in Debt finance?
Debt finance is more elastic than equity in that various amounts can be borrowed at a fixed or floating interest rate and for a range of maturities to suit the financing need of a company. If debt finance is no longer necessary it can more easily be repaid (depending on the issue terms).
1. A fellow student says to you: "The statement of cash flows is the easiest of the basic financial statements to prepare because you know the answer before you start. You compare
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