One of the major advantages of common stock financing is: I. equity capital requires a lower rate of return than debt capital in the same firm II. no fixed dividend obligation exists III. it is relatively cheaper issuing new common stock than issuing new debt capital IV. common stocks holders receive a zero rate of return a. I only b. II only c. II and III only d. I and III only e. I, III and IV only
One of the major advantages of common stock financing is: I. equity capital requires a lower rate of return than debt capital in the same firm II. no fixed dividend obligation exists III. it is relatively cheaper issuing new common stock than issuing new debt capital IV. common stocks holders receive a zero rate of return a. I only b. II only c. II and III only d. I and III only e. I, III and IV only
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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One of the major advantages of common stock financing is:
I. equity capital requires a lower rate of return than debt capital in the same firm
II. no fixed dividend obligation exists
III. it is relatively cheaper issuing new common stock than issuing new debt capital
IV. common stocks holders receive a zero rate of return
a. I only
b. II only
c. II and III only
d. I and III only
e. I, III and IV only
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