Multiple Choice
Which of the following is not true regarding common stock?
A) Common stock has no maturity.
B) New issues of common stock may dilute existing shareholder equity.
C) Common stock is a permanent source of funds.
D) Dividends paid are not tax-deductible.
E) Dividends are considered a fixed charge that must be paid.
Correct Answer:
Verified
Correct Answer:
Verified
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