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    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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    https://brainmass.com/business/accounting/long-term-debt-35236

    Solution Summary

    The inexpensive nature of long-term debt in a firm's capital structure.

    $2.19

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