Major difference between debt and equity

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Reference no: EM131047858

Which of the following does NOT represent a major difference between debt and equity?

A. Creditors do not have voting power as stockholders do.

B. Payment on interest on debt in considered an expense, while payment of dividends is not.

C. Unpaid debt is a liability of the firm, and if not paid, can result in liquidation of the firm. Unpaid dividends cannot.

D. One of the costs of issuing equity is the possibility of financial distress, while no *financial distress is associated with debt.

Reference no: EM131047858

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