Question:
Why are firms not using 100 percent debt financing?
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Debt financing entails the ways employed by the business to fund its undertaking by finances given to it on credit terms within a given period. On the other hand, 100 percent debt financing entails all the finances a given utilizes belong to borrowing from credit facilities within a given period. Therefore, most of the company's equity belongs to external bodies within a given period.
Answer and Explanation:
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Free Flashcards about ACCT 1212Businesses don't use 100 percent debt funding since the governing administration may impose higher tax rates on the interest earned from debt...
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