Which of the following is an advantage for a firm to issue common stock over long-term debt?
A) the cost of equity financing being less than the cost of debt financing
B) the primary claim of equityholders on income and assets in the event of liquidation
C) no maturity date on which the par value of the issue must be repaid
D) the tax deductibility of dividends which lowers the cost of equity financing
C) no maturity date on which the par value of the issue must be repaid
You might also like to view...
Orlando, the manager of a camera store, believes that his store may be closed by corporate in the near future, so he cannot sleep well at night and he is dealing with severe anxiety and irritability, and he has been ill several times this month. Several times Orlando has missed important details in his job, and he almost got in an automobile accident this morning. Orlando is experiencing
A. panic. B. management by avoidance. C. inward attack. D. blind avoidance. E. an outer defensive avoidance.
When two products from different companies are promoted together, using one consumer promotion, it is a(n):
A) intracompany tie-in B) intercompany tie-in C) overlay D) premium
Under the periodic inventory system, the Purchases account is used to accumulate all purchases of merchandise for resale
Indicate whether the statement is true or false
A company with income before income taxes of $194,000, and $20,000 in interest expense, has an interest coverage ratio of
A) 10.7 times. B) 8.7 times. C) 9.7 times. D) 1.1 times.