Debt or equity
Exercise and reference answers
- Upper category
- Debt
- Lower category
- Equity
- Items
- Category
- Debt
- Item
- Cheaper
- Category
- Debt
- Item
- Tax saving
- Category
- Debt
- Item
- Must repay
- Category
- Debt
- Item
- Fixed cost
- Category
- Equity
- Item
- No promise
- Category
- Equity
- Item
- Riskless
- Category
- Equity
- Item
- Dilutes
- Category
- Equity
- Item
- Owners
- Instructions
- Send each feature to the debt track or the equity track.
Explanation
_Source: syllabus Business Studies Part II, Chapter 9, Financial Management._