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Why equity is riskier than debt 2024?

Alexander Wright | 2023-05-07 11:13:32 | page views：1364
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Felix Brown

Works at the International Renewable Energy Agency, Lives in Abu Dhabi, UAE.
It starts with the fact that equity is riskier than debt. Because a company typically has no legal obligation to pay dividends to common shareholders, those shareholders want a certain rate of return. Debt is much less risky for the investor because the firm is legally obligated to pay it.
2023-05-16 11:13:32
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Amelia Davis

QuesHub.com delivers expert answers and knowledge to you.
It starts with the fact that equity is riskier than debt. Because a company typically has no legal obligation to pay dividends to common shareholders, those shareholders want a certain rate of return. Debt is much less risky for the investor because the firm is legally obligated to pay it.
When Is Debt Good? - Harvard Business Review
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