b) Indicate which of the following statements is most correct by placing the number in the marked square -> 1 2 Equity is the cheapest form of financing because it has no cash flow cost Equity is the cheapest form of financing because its cost is equal to the dividend paid to shareholders Debt is a cheaper funding source than equity because debtholders face more risk Debt is a cheaper funding source than equity because debtholders face less risk 3 4