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Author Question: Which of the following is NOT true regarding common stock? A) Common stock, unlike bond ... (Read 120 times)

notis

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Which of the following is NOT true regarding common stock?
 
  A) Common stock, unlike bond principal, does not mature.
  B) Dividends, unlike interest payments, are not tax deductible.
  C) Dividend payments, like interest payments, are fixed.
  D) Common stockholders are owners of the firm, whereas bondholders are creditors.

Question 2

Financing with new common stock is generally more costly than financing with retained earnings
  due to increasing tax rates.
 
  Indicate whether the statement is true or false


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aliotak

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notis

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aliotak

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