question archive Equity capital is considered more expensive than debt capital because * Dividends on equity capital normally does not have tax shield Dividends on equity capital may not be declared given an insufficient corporate earnings Interests on debt capital may not be paid given an insufficient corporate earnings Interests on debt capital are paid uniformly each year based on a fixed amount even in the case of large corporate earnings
Equity capital is considered more expensive than debt capital because * Dividends on equity capital normally does not have tax shield Dividends on equity capital may not be declared given an insufficient corporate earnings Interests on debt capital may not be paid given an insufficient corporate earnings Interests on debt capital are paid uniformly each year based on a fixed amount even in the case of large corporate earnings
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Equity capital is considered more expensive than debt capital because *
Dividends on equity capital normally does not have tax shield
Dividends on equity capital may not be declared given an insufficient corporate earnings
Interests on debt capital may not be paid given an insufficient corporate earnings
Interests on debt capital are paid uniformly each year based on a fixed amount even in the case of large corporate earnings
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