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Long-Term Debt
Long-term debt is a debt obligation that has a maturity from the date the obligation was incurred of more than one year. The debt obligation commits the organization to repay the amount borrowed and to make daily interest payments through the life of the loan. Failure by the borrower to make the needed payments can result in bankruptcy.
If an optimal capital structure exists, what are the reasons why too little debt is as undesirable as is too much debt? Too little debt may be as unwanted as too much debt for
answers for the personal finance literacy 2nd edition workbook answers chapter 9(obtaining and protecting your credit)
evaluate the importance of leverage in a small scale companyestion..
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If the issuer company is taken over, then the bondholders are likely to suffer. It is due to lowering of the stock prices in the market as a post takeover effect.
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