For a Corporation Such as AT&T, What Are the Two

Multiple Choice

For a corporation such as AT&T, what are the two primary advantages of equity financing?

A) It never has to be paid back and flotation costs are low.
B) There is no obligation to pay dividends or to repay the money obtained from the sale of stock.
C) Interest payments are less than debt financing and principal does not have to be repaid.
D) Ownership is spread among many individuals and no interest payments are required.
E) Investors pay top dollar for stock issues and the corporation has higher ongoing expenses.