What conditions favor the use of long-term debt?

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1. When a number of alternative methods of long-term financing are under considerations; what conditions favor the use of long-term debt?

1a.When a number of alternative methods of long-term financing are under considerations; what conditions favor the use of common stock.

Please explain.

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Solution Preview

The following factors favor the use of Long term debt as a mode of long term financing:

- Debt financing allows the founders of the company to retain control and ownership of the ...

Solution Summary

This solution identifies six factors of situations that favor the use of long-term debt.

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