Which of the Following Is Incorrect

question 36

Multiple Choice

Which of the following is incorrect?

• A) The after-tax cost of debt for a firm with losses is equal to the interest rate on the debt.
• B) Most debt is placed privately and thus there is no flotation cost.
• C) Flotation costs for preferred stock are higher than for debt.
• D) Firms always pay dividends on their common stock issues because of the ease with which common shareholders can assume control of the firm.

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Definitions:

Kindergarten

A preschool educational approach traditionally based on playing, singing, practical activities such as drawing, and social interaction.

Later Success

Achievements or positive outcomes attained after an initial period of development, effort, or growth.

First Grade

The initial grade of primary education in systems that follow a certain sequence, typically involving students aged six to seven years.

Standards

Established criteria or benchmarks that serve as a reference point for quality, performance, or behavior.