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Title: Which of the following is a major difference between debt financing and equity financing?
Post by: phoebe.lou on May 1, 2022
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.


Title: Which of the following is a major difference between debt financing and equity financing?
Post by: schoolkidchuck on May 1, 2022
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