If a firm does not want to use either dividends or debt as its balancing item, then it is most apt to use _____ for that purpose.

Question

Quizplus · Accepted Answer

If a company does not want to use dividends or debt as its balancing item, the only option left is equity. This means that the company can raise additional funds by issuing more shares and diluting the ownership of current shareholders. However, this may not be the most favorable option as it can lower the value of existing shares and reduce control for current shareholders.

If a Firm Does Not Want to Use Either Dividends