Why is equity capital generally more expensive than debt financing? A) Dividends fluctuate more than interest rates.
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Question:
- Why is equity capital generally more expensive than debt financing?
A) Dividends fluctuate more than interest rates.
B) Interest on bonds is a legal obligation.
C) Investors expect to be paid more for exposure to higher risk.
D) Investors have a greater demand for equity investments than for debt investments.
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Personal Finance Building Your Future
ISBN: 978-0073530659
1st edition
Authors: Robert B. Walker, Kristy P. Walker
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