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Which of the following statements are false (check all that apply)? Group of answer choices: A> Debt holders have lim...

Which of the following statements are false (check all that apply)?

Group of answer choices:

A> Debt holders have limited upside.

B> Equity providers limit their downside by securing their investment with assets as collateral.

C> Lenders have more involvement in a business in order to protect their capital.

D> Debt is less risky to the business because the cost of capital is lower.

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Answer #1

A and D are correct.

Equity providers cannot really limit their downside.

Equity providers are more involved in the business.

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