From the company's point of view, which of the following is an advantage of financing with equity as opposed to debt?

Question

Quizplus · Accepted Answer

Financing with equity means that the company is not committed to making regular payments to shareholders, as they would be with debt financing. This can provide more flexibility for the company in terms of managing its cash flow. Dividends not being an expense and shareholders having voting rights are features of equity financing, but they do not necessarily provide a clear advantage over debt financing. The cost of equity not being tax deductible can actually be seen as a disadvantage compared to debt financing, where interest payments can be written off as a tax deduction.

From the Company's Point of View, Which of the Following