Two advantages that debt financing has over financing from the issue of shares are:

Group of answer choices

The principal must be paid back at maturity and dividends can be paid to shareholders because earnings per share increases.

Interest payments on outstanding debt are required periodically and the interest expense can be claimed as a tax deduction.

There is more profit available to pay dividends to shareholders and dividends can be claimed as a tax deduction.

Interest expense can be claimed as a tax deduction and there is no dilution in share ownership.