JK is seeking to raise finance for a project and the directors would prefer to...

In the long term servicing a bank loan is more expensive than servicing equity shares due to the higher risk for the lender.

The interest on a bank loan is deducted from profit before dividends can be declared to equity shareholders each year.

Because the assets of a business belong to the equity shareholders, a bank loan should NOT be secured on the assets of the business.

A bank loan has high issue costs compared to an issue of equity shares because it takes longer to arrange.