Is this a guarantee of payment
Question: Why might an issuer seek to perfect his or her security interest in a piece of collateral? Is this a guarantee of payment? May the issuer take the collateral under any circumstance, and why might the issuer do this?
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Risk-free debt allows the firm to get the benefit of a low cost of capital of debt without raising its cost of capital of equity?
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Why might an issuer seek to perfect his or her security interest in a piece of collateral? Is this a guarantee of payment?
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