As Whole Foods Considers Equity Financing, It Thinks About the Influence

Multiple Choice

As Whole Foods considers equity financing, it thinks about the influence that it may have on company operations. Which of the following is an advantage of equity financing in relation to this key consideration?

A) higher interest rates increase the cost of financing
B) it can be either short or long term
C) it does not need to be repaid, which provides financial flexibility for the company
D) interest expenses can be deducted from company profits, lowering the company's tax liabilities