A disadvantage of equity financing is

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Equity financing involves selling ownership in the company, which can lead to dilution of the ownership interest of the current owners. This means that the proportion of profits and control that the current owners have in the company decreases. Therefore, option A is a disadvantage of equity financing. Option B is not a disadvantage of equity financing because there is no pressure to pay dividends in equity financing, as dividends are paid out of profits, which are variable. Option C is not a disadvantage of equity financing because equity financing is a common method of raising funds for start-ups and growth companies. Option D is not a disadvantage of equity financing because interest expense is a cost associated with debt financing, not equity financing.

A Disadvantage of Equity Financing Is