Which of the following is not an advantage of a company using equity rather than debt to finance a project?
A)Interest always takes more cash than does paying dividends.
B)Dividends do not need to be paid.
C)Equity does not need to be repaid whereas debt does.
D)Interest and Dividends are tax deductible.

Question

Quizplus · Accepted Answer

This statement is false. Paying dividends can take just as much cash as paying interest. The correct answer should be an advantage of using equity, but this statement is not an advantage.

Which of the Following Is Not an Advantage of a Company