Which of the Following Is a Difference Between Debt and Equity

Multiple Choice

Which of the following is a difference between debt and equity capital?

A) Debt capital does not require periodic payments, whereas equity capital requires period payments.
B) Debt capital requires a fixed rate of return, whereas equity capital requires returns in proportion to profits.
C) Debt capital does not provides a tax shield, whereas equity capital provides a tax shield.
D) Debt capital affects operating leverage, whereas equity capital affects financial leverage.