which is NOT a benefit of debt financing from the acquirer’s perspective. A. EPS accretion B. Lower cost of capital C. Return on equity D. Lack of covenants
Question
Solution 1
The option that is NOT a benefit of debt financing from the acquirer’s perspective is D. Lack of covenants.
Here's why:
A. EPS accretion: This is a benefit because if the earnings per share (EPS) increases post-acquisition, it means the acquisition is adding value to the shareholders' equity.
B. Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI
Similar Questions
One advantage of using equity financing is dividends are discretionary, not an obligation like debt financing.A.TrueB.False
Debt financing is essentiallyMultiple Choiceborrowing money.selling ownership.borrowing ownership.selling money.the same as stock.
The financing activities of a firm involve the acquisition of funds from investors and creditors to start or sustain a business operation.Select one:TrueFalse
Venture capital firms provide debt funding so the entrepreneur will not have to give up equity.Group of answer choicesTrueFalse
Analyse one benefit to a business of debt factoring as a suitable form of finance.
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.