Equity Financing Via Common Stock Can Be More Expensive Than

question 18

Short Answer

Equity financing via common stock can be more expensive than issuing bonds because
common stocks must be insured.
there is more administration involved.
common stocks are backed by retained earnings.
common stock must be sold through a broker.
interest paid to bondholders is a tax-deductible business expense, but stock dividends are not tax-deductible.

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Definitions:

Physical Neglect

A form of child neglect where a caregiver fails to provide necessary basic physical needs, including food, shelter, hygiene, and medical care.

Malnourished

A condition resulting from a diet lacking in essential nutrients, leading to impaired physical and mental development or disease.

Personal Hygiene

Practices and routines aimed at maintaining one's body cleanliness and health for personal well-being and social reasons.

Physical Abuse

Intentional use of physical force against another person, resulting in injury, pain, or impairment.