Generating capital by means of debt financing
A. involves borrowing money, either with a bank loan or with the use of corporate bonds.
B. means that the firm will have to put up some of its assets as a loan guarantee.
C. may be worth it if the borrowed money is used to implement a marketing plan that earns a return greater than the cost of borrowing the money.
D. means that the firm borrowing the money will have to pay interest charges.
E. All these answers are correct.
Answer: E
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