Cost of Equity Share Capital is more than cost of debt because: | Faculties

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Ranjeet

🎓 Tutor III ⭐ 34.60K Points

📊 Financial Management

Q. Cost of Equity Share Capital is more than cost of debt because:

(A) Face value of debentures is more than face value of shares,
(B) Equity shares have higher risk than debt,
(C) Equity shares are easily saleable
(D) All of the three above.

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✅ Correct Answer: (B) Equity shares have higher risk than debt,

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