For a corporation, an important advantage of selling stocks instead of bonds is that:
a. in the case of a bond, the corporation has to pay a fixed rate of interest, while in the case of a stock, the corporation is not liable to pay any interest.
b. in the case of a bond, the corporation has to pay a fixed rate of interest, while in the case of a stock, the corporation earns a fixed rate of interest.
c. a bond can generate funds for the corporation only once, while a stock generates funds for the corporation each time it is resold.
d. it is difficult to sell a bond because people perceive that a bond is risky, while it is easier to sell a stock because people perceive that it is safe to invest in stock.
a
You might also like to view...
The various ways that vertical relationships can evade regulation include
a. tying the sale of a regulated good to a customer's choice of an unregulated good b. bundling regulated and unregulated goods c. preventing the exclusion of rival unregulated goods d. insuring tax rates are uniform across jurisdictions
Purchasing power parity explains how the exchange rate will adjust to differences in price levels between two countries
a. True b. False Indicate whether the statement is true or false
A rain barrel is a container that captures and stores rainwater for landscape and garden use during dry periods. As a result, rain barrels benefit the community through water conservation. If homeowners do not consider this external benefit of rain barrels, then a. the socially optimal quantity of rain barrels will be larger than the equilibrium quantity of rain barrels. b. the socially optimal
quantity of rain barrels will be smaller than the equilibrium quantity of rain barrels. c. the socially optimal price of rain barrels will be lower than the equilibrium price of rain barrels. d. the market for rain barrels would benefit from a tax on rain barrels.
Checks written by the firm and not yet cleared represe
a. payment float b. availability float c. net float d. cash in hand e. none of these