7 A reason why a firm should take on debt is to (circle all that apply) (A) Borr

Question

7 A reason why a firm should take on debt is to (circle all that apply) (A) Borrowing money always makes sense (B) The interest rate on debt is lower than the expected return on projects you are financing (C) It is always good to finance by a mixture of debt and equity (D) None of the above 8 What exists between industries in a value chain (circle all that apply)? (A) (B) (C) (D) Bond markets Markets for initial public offerings Equity markets Markets setting the price of a product supplied to the next Industry in the chain

Explanation / Answer

7) The answer is B- ) The interest rate on debt is lower than the expected return on projects you are financing.

because, the company take on a debt because, the interest rate for the company has to pay on debt is lower than the rate of return on projects in which the debt is financing. therefore, it its profitable for company to go for debt. '

8) please uplaod it again. it against chegg policy

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