When a partner leaves a partnership, it is possible that total assets will be unaffected

The number of authorized shares of common stock is always greater than or equal to the number of outstanding shares of common stock

Indicate whether the statement is true or false

The risk of the debt capital is less than that of other long-term contributors of capital because ________

A) they have a lower priority of claim against any earnings or assets available for payment B) they have the stockholders' personal assurance for all future interest payments C) there is no interest rate risk as the interest rate is predetermined D) the tax-deductibility of interest payments lowers the debt cost to a firm substantially