Which of the following is a reason why equity capital is, Ask an Expert

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Which of the following is a reason why equity capital is considered riskier than debt capital?

A) Equity capital has a higher priority claim against assets and earnings. B) Equity capital remains invested in a firm indefinitely. C) Equity capital expects dividend payments which are not tax-deductible. D) Equity capital requires regular periodic payments in the form of dividends.

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Financial Management, Finance

Category:- Financial Management
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