Question: Why is debt less risky than equity? It is easier to obtain. Bankers are only concerned with cash flow, and they are typically eager to

Why is debt less risky than equity?
It is easier to obtain.
Bankers are only concerned with cash flow, and they are typically eager to lend money.
It has preference in liquidation.
Finding buyers for common stock is a risky proposition.
 Why is debt less risky than equity? It is easier to

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!