Disadvantages of Debt Financing Over Equity Financing Include All of the Following

Multiple Choice

Disadvantages of debt financing over equity financing include all of the following EXCEPT which one?

A) the debt must be repaid regardless of the profitability of the company
B) the company must make interest payments to bondholders regardless of the profitability of the company
C) unfavourable economic conditions can affect the level of interest rates
D) major bondholders can exert significant pressure on company management