Which of the following statements about equity and debt financing is correct?
A. Equity financing can change stockholder control.
B. Dividends are tax deductible.
C. Equity financing is always better than debt financing.
D. Equity financing requires dividends to be paid.
Answer: A
You might also like to view...
How is it possible for a company to show a net loss for a given year, yet produce positive net cash flows from operating activities?
When sending a negative message, managers should ______.
A. get right to the point B. use any available source of technology to get the message to the receiver C. use e-mail D. be sensitive to the receiver
Any breach allows the nonbreaching party to sue for damages.
Answer the following statement true (T) or false (F)
In horizontal analysis the percent change is computed by:
A. Subtracting the base period amount from the analysis period amount, dividing the result by the base period amount, then multiplying that amount by 100. B. Subtracting the analysis period amount from the base period amount, dividing the result by the base period amount, then multiplying that amount by 100. C. Subtracting the base period amount from the analysis period amount. D. Subtracting the base period amount from the analysis amount, then dividing the result by the analysis period amount. E. Subtracting the analysis period amount from the base period amount.