Why are claims on income discretionary with equityfinancing but nondiscretionary with debt financing?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter12: The Cost Of Capital
Section: Chapter Questions
Problem 1QTD
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Why are claims on income discretionary with equity
financing but nondiscretionary with debt financing?

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