Which of the Following Is an Advantage of a Company

question 114

Multiple Choice

Which of the following is an advantage of a company using equity rather than debt to finance a project?

• A)Dividends do not need to be paid.
• B)Interest is tax deductible, whereas dividends paid are not.
• C)Dividends require less cash than does paying interest on debt.
• D)No taxation occurs, similar to bonds.