If a firm finances with equity rather than with debt,it will bear no interest expense and thus yield greater net income.

Name: If a firm finances with equity rather than with debt,it will bear no interest expense and thus yield greater net income.
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Question

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Equity financing does not involve paying interest, so a firm that finances with equity will have lower expenses and greater net income compared to a firm that finances with debt and has to pay interest expenses.

If a Firm Finances with Equity Rather Than with Debt,it