To the company issuing it, Debt is far less expensive than is Equity. Why? Select two best answers. a) It is riskier to the investor and therefore b) It is less risky to the investor and therefore commands a higher return commands a lower return c) Interest Expense is tax deductible as an expense d) Debt payments are subsidized by the Federal Reserve For the issuing company, Debt is cheaper than Equity. So, why don't firms just fund themselves with 100% debt? a) The credit rating agencies regulate how much debt b) The Federal Reserve regulates how much debt a a company can issue. company can issue. Debt investors will not let companies issue too d) The company's Board of Directors will not let much debt, because it makes the debt too risky. companies issue too much debt, because it makes the debt too risky