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)No taxation similar to bonds.

Question

Quizplus · Accepted Answer

Equity financing does not obligate the company to pay dividends, whereas debt financing requires regular interest payments.

Which of the Following Is an Advantage of a Company