Which of the following is an advantage of equity financing vs debt financing? A If the company makes no profit in a year it has no legal obligation to pay a dividend. B paid to shareholders attract tax relief and so lower the company tax bill. C Equity holders can exert significant pressure of management of a company. D Equity financing can typically be used for all sizes of financing from a few hundred pounds to billions.
Which of the following is an advantage of equity financing vs debt financing? A If the company makes no profit in a year it has no legal obligation to pay a dividend. B paid to shareholders attract tax relief and so lower the company tax bill. C Equity holders can exert significant pressure of management of a company. D Equity financing can typically be used for all sizes of financing from a few hundred pounds to billions.
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter21: Dynamic Capital Structures And Corporate Valuation
Section: Chapter Questions
Problem 2MC
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Question 23
Which of the following is an advantage of equity financing vs debt financing?
A If the company makes no profit in a year it has no legal obligation to pay a dividend.
B paid to shareholders attract tax relief and so lower the company tax bill.
C Equity holders can exert significant pressure of management of a company.
D Equity financing can typically be used for all sizes of financing from a few hundred pounds to billions.
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