​Which of the Following Is the Effect of Issue of Additional

question 110

Multiple Choice

​Which of the following is the effect of issue of additional common stock by a company on its liquidity and profitability metrics?

• A) ​Its profitability increases.
• B) ​Its profitability and liquidity increase.
• C) ​Its profitability and liquidity remain unaffected.
• D) ​Its liquidity increases.

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Definitions:

Enthusiasm

A feeling of excitement, eagerness, or interest towards a particular activity, subject, or idea.

Oral Presentation

A spoken exposition or lecture, typically illustrated or accompanied by visual aids, to convey information to an audience.

Legal Information

Facts or data relating to the law, legal systems, or legal processes.

Formal Speech

A structured, planned address, usually of a serious nature, delivered to an audience.