Question: Indicate whether each of the following relates to equity (E) or debt (D) financing and whether it makes that form of financing more, or less,

Indicate whether each of the following relates to equity (E) or debt (D) financing and whether it makes that form of financing more, or less, favorable.
____ 1. Interest is tax deductible.
____ 2. Dividends are optional.
____ 3. It must be repaid.
____ 4. Additional stock issuances dilute existing stockholders’ control.

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