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Which of the following is an advantage for a firm to issue common stock over longdashterm debt?
a. the tax deductibility of dividends which lowers the cost of equity financing
b. no maturity date on which the par value of the issue must be repaid
c. the cost of equity financing being less than the cost of debt financing
d. the primary claim of equityholders on income and assets in the event of liquidation
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Answers: 1
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Which of the following is an advantage for a firm to issue common stock over longdashterm debt?
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