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प्रश्न
Why is cheaper debt not automatically the best source of finance?
पर्याय
Debt never creates fixed payment commitments
Borrowed funds do not create repayment obligations
Equity requires compulsory dividends
Cost must be balanced against risk and other factors
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उत्तर
Debt may be cheaper, but its compulsory interest and repayment commitments increase risk. A financing choice must balance cost against risk and other factors.
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