Multiple Choice
The disadvantages of issuing common stock versus long-term debt include all of the following EXCEPT
A) the potential dilution of earnings.
B) high cost.
C) no maturity date on which the par value of the issue must be repaid.
D) the market perception that management thinks the firm is over-valued, causing a decline in stock price.
Correct Answer:
Verified
Correct Answer:
Verified
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