The Coral Health Plan, a for-profit health plan, has two sources of capital:
Debt and equity. With regard to these sources of capital, it can correctly be stated that
Coral's equity holders have an ownership interest in the health plan
The interest that Coral pays on its debt most likely is not tax deductible to Coral
Coral's debt holders have no legal claim to Coral's assets
Equity is a more risky source of capital, from Coral's perspective, than is debt
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