Why is equity capital generally more expensive than debt, Ask an Expert

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Why is equity capital generally more expensive than debt financing?

a. Dividends fluctuate more than interest rates.
b. Interest on bonds is a legal obligation.
c. Investors expect to be paid more for exposure to higher risk.
d. Investors have a greater demand for equity investments than for debt investments

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Accounting Basics, Accounting

Category:- Accounting Basics
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