Asked by Jocelyn Espericueta on Apr 29, 2024

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Debt is frequently the least costly method of raising additional financing dollars,one of the reasons it is so frequently used.

Debt

Debt represents money or goods that one party owes to another under the condition that it is to be repaid at a future date, often with interest.

Financing Dollars

Funds that are provided for business operations, investments, or other purposes requiring financial support, often in the context of corporate finance or lending.

Costs

The amount of money required to produce, maintain, or acquire a product or service, including direct, indirect, fixed, and variable components.

  • Absorb the specifics and consequences of a range of corporate finance sources, including trade credit and indebtedness.
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IR
izabella rodriguezMay 01, 2024
Final Answer :
True
Explanation :
Debt financing often offers lower financing costs compared to equity financing, due to tax deductibility of interest payments and lower risk for lenders, making it a frequently used method for raising capital.