General Studies · Financial Management
Choose the correct code for the following statements being correct or incorrect. Statement I: Companies generally do not prefer low-cost debt financing. Statement II: Raising debt requires credit rating and payment of interest even if companies suffer losses.
- 1Both statements I and II are incorrect.
- 2Both statements I and II are correct.
- 3Statement II is correct, but I is incorrect.✓
- 4Statement I is correct, but II is incorrect.
Correct answer
Statement II is correct, but I is incorrect.
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