If potential creditors and investors sense that a company has a higher risk of going bankrupt, which of the following will occur?
If potential creditors and investors sense that a company has
a higher risk of going bankrupt, which of the following will occur?
A. The company will be charged a higher interest rate by potential lenders.
B. All of these answers.
C. Companies will have to sell more of their shares at a higher price.
D. More lenders will want to lend money to the company due to the higher interest rate.