Unlike the debt in a firm's capital structure, the equity in a firm's capital structure:
A) imposes no required payments.
B) yields extensive tax benefits.
C) is highly risky.
D) is not flexible.

Question

Quizplus · Accepted Answer

Equity does not require mandatory payments like debt does, as dividends are not obligatory and can be adjusted based on the company's financial situation.

Unlike the Debt in a Firm's Capital Structure, the Equity