Question: Broadly speaking what is the difference between debt and equity? Equity has a higher claim than debt if the firm goes bankrupt. Equity implies partial

Broadly speaking what is the difference between debt and equity?

Equity has a higher claim than debt if the firm goes bankrupt.
Equity implies partial ownership in the firm while debt is a liability to the firm.

Dividends on equity are income tax deductible while interest on debt is NOT income tax deductible.

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