For a Corporation Such as Bell Canada, What Are the Two

Multiple Choice

For a corporation such as Bell Canada, what are the two primary advantages of equity financing?

A) Ownership is spread among many individuals, and no interest payments are required.
B) Investors pay top dollar for stock issues, and the corporation has higher ongoing expenses.
C) Interest payments are less than debt financing, and principal does not have to be repaid.
D) There is no obligation to pay dividends or to repay the money obtained from the sale of stock.