Multiple Choice
Which of the following is NOT correct?
A) The after-tax cost of debt for a firm with losses is equal to the interest rate on the debt.
B) Firms always pay dividends on their common stock issues because of the ease with which common shareholders can assume control of the firm.
C) Flotation costs for preferred stock are higher than for debt.
D) Most debt is placed privately and thus there is no flotation cost.
Correct Answer:
Verified
Correct Answer:
Verified
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