The primary advantage of equity capital is that it does not have to be repaid with interest.

Question

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Equity capital is raised by issuing shares of ownership in a company to investors. Unlike debt capital, which must be repaid with interest, there is no set payment schedule or interest rate attached to equity capital. Therefore, the primary advantage of equity capital is that it does not have to be repaid with interest.

The Primary Advantage of Equity Capital Is That It Does