Economics · Business Finance
What is the primary reason company promoters may prefer issuing debt over equity to raise additional funds?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1To minimize the total debt obligations of the company
- 2To attract a larger number of equity shareholders
- 3To preserve their voting rights and operational control over the company✓
- 4To completely avoid the risk of fixed interest payments
Correct answer
To preserve their voting rights and operational control over the company
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