Equity and debt financing both have their advantages and disadvantages. Which of the following pairs of phrases below accurately reflect the advantages of both types of financing? Debt FinancingEquity FinancingA)Changes stockholder controlDividends are optional Debt FinancingEquity FinancingB)Does not have to be repaidDoes not change stockholder control Debt FinancingEquity FinancingC)Interest is tax deductibleDoes not have to be repaid Debt FinancingEquity FinancingD)Dividends are optionalInterest is tax deductible
A. Option A
B. Option B
C. Option C
D. Option D
Answer: C
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