In Considering Equity and Debt Financing,which of the Following Statements

Multiple Choice

In considering equity and debt financing,which of the following statements is true?

A) Compared to equity financing,debt is a more expensive source of funding.
B) Interest and dividends payments are required to be made by the issuing corporation.
C) In general,the higher the proportion of total debt-to-equity ratio,the greater the likelihood the firm will have difficulty in meeting its obligations in some future period.
D) Most firms prefer to have no debt and rely on equity financing.