Which of the following statements about the characteristics of debt and equity are true?
A) They both can be long-term financial instruments.
B) They both involve a claim on the issuer's income.
C) They both enable a corporation to raise funds.
D) All of the above.
E) Only A and B of the above.

Question

Quizplus · Accepted Answer

Both debt and equity can be long-term financial instruments, involve a claim on the issuer's income, and enable a corporation to raise funds. Therefore, all of the statements are true.

Which of the Following Statements About the Characteristics of Debt