Select all that applyWhat are the advantages of using internal financing?Multiple select question.It prevents the adverse market reaction that tends to accompany a stock issue.It may be cheaper than debt or equity issues.Firms are required to use internal financing before exploring external sources.The use of internal financing increases free cash flow.

Advantages of debt financing over equity financing include that ______. (Check all that apply.)Multiple select question.interest payments are optionalstockholders' control will not be diluteddebt financing does not require repaymentsinterest payments are tax deductible

Select all that applyWhich of the following statements are true? (Check all that apply.)Multiple select question.An advantage of equity over debt financing is corporations are not required to pay dividends or repay stockholders.Corporations rely more on debt financing than equity financing because debt financing is more plentiful.Corporations rely more on equity financing than debt financing because debt financing is more expensive.Two sources of financing for a corporation are debt and equity.

What is the primary advantage of using financial leverage?a.Reduced dependence on external financingb.Lower interest paymentsc.Increased potential returns for shareholdersd.Decreased volatility in stock prices

Explain at least two sources of finance that would not be relevant to yourbusiness?• Give the advantages and disadvantages of each source of finance• Explain why you could not use them for your business

3. Discuss the advantages and disadvantages of both debt and equity finance.