Question: Which statement about the the main differences between debt and equity is incorrect? A. Debt generally does not provide any voting rights nor company ownership.

Which statement about the the main differences between debt and equity is incorrect?

A. Debt generally does not provide any voting rights nor company ownership. Equity does.

B. Interest is tax deductible, dividends are not.

C. Unpaid debt is a liability of the firm and can force the firm to liquidate or reorganize. Unpaid dividends are not a liability of the firm.

D. The cost of equity is lower than that of debt.

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