Question : Which of the following generally NOT considered a major difference
Which of the following is generally NOT considered a major difference between financing business operations through debt instead of equity?
Debt is less expensive for the corporation itself because it need not pay interest; equity is less expensive for stockholders but the corporation must pay interest
"For existing stockholders, debt does not dilute the value of their existing ownership but issuing new equity does dilute ownership"
"For investors, the value of debt is less volatile than the value of equity "
None of the above are major differences between debt and equity