Long-term debt
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The inexpensive nature of long-term debt in a firm's capital structure is due to the fact that _________
the equity holders are the true owners of the firm, equity capital has a fixed return, creditors have a higher position in the priority of claims, or dividend payments are tax-deductible
I believe - creditors have a higher position in the priority of claims - is the answer - please advise answer & why - thanks so much!
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Solution Summary
The inexpensive nature of long-term debt in a firm's capital structure.
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