[Solved] Which of the Following Is an Advantage for a Firm

Question 7
Multiple Choice

Which of the following is an advantage for a firm to issue common stock over long-term debt?

A) the cost of equity financing being less than the cost of debt financing
B) the primary claim of equityholders 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

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