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18. Which of the following statements is true? A. Payment on interest on debt is considered an expense, while payment of dividends is a return

18. Which of the following statements is true?

A. Payment on interest on debt is considered an expense, while payment of dividends is a return on capital.

B. Unpaid common stock dividends can result in liquidation of the firm.

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

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