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Basic Question 1 of 19
In general, for a start-up company, debt financing is: A. attractive to its lenders.
B. appealing to the company.
C. neither A nor B is correct.
User Contributed Comments 2
| User | Comment |
|---|---|
| aishaoh | what? i thought debt financing is cheaper than equity??? |
| breh | @aishaoh: not always. for such companies there's no positive income and debt financing could be very expensive. |
I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu
Learning Outcome Statements
explain factors affecting capital structure and the weighted-average cost of capital
CFA® 2024 Level I Curriculum, Volume 2, Module 6.