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Compared to debt, which of the following statements is true about a company issuing equity?

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Compared to debt, which of the following statements is true about a company issuing equity?

A.

Its shareholders assume less risk than its creditors.

B.

The payment of interest on debt is not tax deductible.

C.

The payment of dividends on common stock is a legal obligation.

D.

It is more expensive.

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TESTED 21 Oct 2025