Which of the following is an advantage for a firm to issue common stock over long-
term debt?
A) the cost of equity financing is less than the cost of debt financing
B) the primary claim of equity holders on income and assets in the event of liquidation
C) no maturity date on which the par value of the issue must be repaid
D) the tax deductibility of dividends which lowers the cost of equity financing
Give this one a try later!
term debt?
A) the cost of equity financing is less than the cost of debt financing
B) the primary claim of equity holders on income and assets in the event of liquidation
C) no maturity date on which the par value of the issue must be repaid
D) the tax deductibility of dividends which lowers the cost of equity financing
Give this one a try later!
