A style typically begins as a risky or unique statement by a relatively small group of people

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.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. Loan repayment of a [Perkins | PLUS] loan would not begin until a student is out of school.