Which of the following factors favor the issuance of equity over debt in the financing decision?
1. Market signaling
2. Distress costs
3. Tax Effects
4. Financial flexibility
O 1, 2, and 4 only
O 1 and 3 only
O 2 and 4 only
O 1 and 2 only
O 2, 3, and 4 only
O None of the options are correct.