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Debt Financing Quiz
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Debt Financing Quiz

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@ReasonableChaparral

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Questions and Answers

Which one of the following is considered debt financing?

  • Using funds from equity financing
  • Raising funds by selling ownership interest
  • Issuing debt instruments like bonds (correct)
  • Setting aside profits shares

    • What is the cost associated with debt financing called?

  • Interest (correct)
  • Ownership interest
  • Equity financing
  • Dividends

    • Which of the following is a common arrangement for debt financing?

  • Raising funds by selling ownership interest
  • Setting aside profits shares
  • Assignment of accounts receivable (correct)
  • Raising funds from fr

    • What is equity financing?

    <p>Raising funds by selling ownership interest</p> Signup and view all the answers

    What is the purpose of dividends in equity financing?

    <p>To compensate for the use of funds from debt financing</p> Signup and view all the answers

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