Question: Why is debt less risky than equity? Responses It has preference in liquidation. It has preference in liquidation. Finding buyers for common stock is a

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

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!