Question: In general, it is more expensive for a company to finance with equity than with debt because a. Long-term bonds have a maturity date and

In general, it is more expensive for a company to finance with equity than with debt because

a. Long-term bonds have a maturity date and must, therefore, be repaid in the future.

b. Investors are exposed to greater risk with equity capital.

c. The interest on debt is a legal obligation.

d. Equity capital is in greater demand than debt capital.

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