Multiple Choice
Which of the following statements is false regarding the issuance of stock versus bonds to raise capital for a corporation?
A) The declaration of dividends reduces the amount of the corporation's taxable income.
B) Interest accrues; whereas, dividends do not accrue.
C) The payment of bond interest is a contractual requirement.
D) The payment of dividends is at the discretion of the board of directors.
Correct Answer:
Answered by ExamLex AI
Correct Answer:
Answered by ExamLex AI
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