From the perspective of a firms managers financing with stoc

From the perspective of a firm’s managers, financing with stock is less risky than financing with debt.

Solution

Debt require regular coupon payments. Non-payment of coupons will increase default risk. Repayment at maturity period is also required at a specific date in future. Common stocks do not require fixed payment of coupons and common stocks are perpetual.

Hence, given statement is True.