Why equity capital is considered riskier than debt capital

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Reference no: EM131451226

Which of the following is a reason why equity capital is considered riskier than debt capital?

A) Equity capital has a higher priority claim against assets and earnings. B) Equity capital remains invested in a firm indefinitely. C) Equity capital expects dividend payments which are not tax-deductible. D) Equity capital requires regular periodic payments in the form of dividends.

Reference no: EM131451226

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