This topic contains a solution. Click here to go to the answer

Author Question: Which of the following is a major difference between debt financing and equity financing? (Read 1502 times)

am7272

  • Full Member
  • ***
  • Posts: 167
Which of the following is a major difference between debt financing and equity financing?
◦ Equity financing has a specific maturity period, whereas debt financing usually has no specific maturity period.
◦ Repayment of debt financing is not linked to organizational performance, unlike equity financing.
◦ Equity holders have primary claims on assets unlike debt financiers.
◦ Payments to equity holders reduce taxable income, whereas debt payments are not tax deductible.
◦ Debt financing is used to cover long-term expenses, whereas equity financing is used for current expenses.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by am7272 on May 9, 2022

hillard sane

  • Full Member
  • ***
  • Posts: 164
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 39% of students answer this correctly




am7272

  • Member
  • Posts: 167
Reply 2 on: May 9, 2022
YES! Correct, THANKS for helping me on my review


FergA

  • Member
  • Posts: 352
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

Vaccines cause herd immunity. If the majority of people in a community have been vaccinated against a disease, an unvaccinated person is less likely to get the disease since others are less likely to become sick from it and spread the disease.

Did you know?

As the western states of America were settled, pioneers often had to drink rancid water from ponds and other sources. This often resulted in chronic diarrhea, causing many cases of dehydration and death that could have been avoided if clean water had been available.

Did you know?

Many supplement containers do not even contain what their labels say. There are many documented reports of products containing much less, or more, that what is listed on their labels. They may also contain undisclosed prescription drugs and even contaminants.

Did you know?

Though the United States has largely rejected the metric system, it is used for currency, as in 100 pennies = 1 dollar. Previously, the British currency system was used, with measurements such as 12 pence to the shilling, and 20 shillings to the pound.

Did you know?

It is believed that humans initially contracted crabs from gorillas about 3 million years ago from either sleeping in gorilla nests or eating the apes.

For a complete list of videos, visit our video library