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At a Meeting of Major Stock Holders a Decision Is

Question 56

Multiple Choice

At a meeting of major stock holders a decision is made to finance expansion to overseas markets by issuing more shares and not taking a long-term note with the company's bank.One of the stock holders opposed this decision but was out-voted.Why would this stock holder oppose this decision?


A) Issuing shares will increase the likelihood of decreasing the owners return on investment.
B) The financial risk would be lower if the note was taken out with the bank.
C) More shares will increase their control but increase their personal taxes.
D) Each of the shareholders would have to increase their own investment.

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