Answered: Which is true of equity financing?…

Which is true of equity financing? It has no fixed maturity date It provides a tax shield It offers creditors no cushion against losses Struggling companies still need to pay dividends

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Which is true of equity financing?

It has no fixed maturity date
It provides a tax shield
It offers creditors no cushion against losses
Struggling companies still need to pay dividends

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