34 Which is of the following are reasons why financing a business through borrowing is cheaper than using equity?

a.

Lenders require a lower rate of return than ordinary shareholders.

b.

Debt financial securities present lower costs than shares because they have prior claims on annual income and in liquidation.

c.

Debt interest cannot be offset against pre-tax profits before calculating the corporation tax bill, thus, reducing the tax paid

d.

Issuing and transaction costs associated with raising and servicing equity generally less than for ordinary shares.