Question

g The lower risk nature of longminusterm debt in a​ firm's capital structure is due to the fact that​ ________. A. the debt holders are the true owners of the firm B. equity capital has a fixed return C. creditors have a higher position in the priority of claims DO. dividend payments are tax minus deductible

Answer 1

The correct option is C states that creditors have a higher position in the priority of claims.