Which of the following is an advantage of a company using equity rather than debt to finance a project?
A)Dividends do not need to be paid.
B)Interest is tax deductible whereas dividends paid are not.
C)Dividends always require less cash than does paying interest on debt.
D)All of these ans choices are advantages of using equity rather than debt to finance a project.

Question

Quizplus · Accepted Answer

Using equity means the company is not obligated to pay dividends, whereas debt requires regular interest payments.

Which of the Following Is an Advantage of a Company