1. Lack of Tax Benefits: Unlike interest on debts, payouts for dividends paid to shareholders are not tax-deductible, which increases the overall cost for equity financing.

1. Lack of Tax Benefits: Unlike interest on debts, payouts for dividends paid to shareholders are not tax-deductible, which increases the overall cost for equity financing.

1. Lack of Tax Benefits: Unlike interest on debts, payouts for dividends paid to shareholders are not tax-deductible, which increases the overall cost for equity financing.