For a Corporation Such as Bell Canada, What Are the Two

question 54

Multiple Choice

For a corporation such as Bell Canada, what are the two primary advantages of equity financing?

• A) Ownership is spread among many individuals, and no interest payments are required.
• B) Investors pay top dollar for stock issues, and the corporation has higher ongoing expenses.
• C) Interest payments are less than debt financing, and principal does not have to be repaid.
• D) There is no obligation to pay dividends or to repay the money obtained from the sale of stock.

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Definitions:

Adult Men

Adult men refers to males who have reached the legal age of maturity, which varies by country but is often considered to be 18 years or older.

Adult Women

Refers to females who have reached the age of majority, which varies by country, typically recognized as 18 years and older.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values differ from the mean of the set.

Furniture Factory

A manufacturing site where raw materials are processed and assembled into furniture for use and sale.