Which of the following is a difference between debt and equity capital?
A) Debt capital does not require periodic payments, whereas equity capital requires period payments.
B) Debt capital requires returns in proportion to profits, whereas equity capital requires a fixed rate of return.
C) Debt capital provides a tax shield, whereas equity capital does not provide a tax shield.
D) Debt capital affects operating leverage, whereas equity capital affects financial leverage.
C
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Debt securities that the company has the positive intent and ability to hold to maturity. Companies report held-to-maturity securities at amortized cost, recognize interest when earned, and do not recognize unrealized holding gains or losses.
(a) interest rate swap (b) held-to-maturity securities (c) gains trading (d) consolidated financial statements
Explain the differences between "product adaptation-communication extension" and "product-communication adaptation" strategies
What will be an ideal response?