How to solve

Which of the following is a reason a company might issue long$-$term debt rather than equity shares when it needs access to cash? Select all answers that apply.

Select one or more:

a$.$ Debt does not carry voting rights.

b$.$ Debt financing typically has a higher cost of capital than equity.

c$.$ Debt financing offers an income tax advantage in that interest payments are deductible.

d$.$ Debt financing might be the company's only available source of funds.