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The Disadvantages of Issuing Stock to Obtain Long-Term Financing Include

Question 7

Multiple Choice

The disadvantages of issuing stock to obtain long-term financing include


A) the legal obligation to pay dividends if the company is profitable.
B) the funds contributed by stockholders must be repaid from after-tax profits.
C) a reduction in the market value of the firm's products.
D) a possible change in management and policies in the company.

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