Although the use of debt can provide tax benefits to the


Although the use of debt can provide tax benefits to the firm, debt also puts pressure on the firm to:

A. Make dividend payments in order to make the stockholders accept the debt.

B. Make interest and principle payments.

C. Meet both interest and dividend payments.

D. Increase both interest and dividend payments.

E. None of the above.

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Financial Management: Although the use of debt can provide tax benefits to the
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