Which of the Following Is NOT an Advantage of Common

question 102

Multiple Choice

Which of the following is NOT an advantage of common stock financing?

• A) no fixed dividend obligation
• B) lowers the firm's weighted cost of capital
• C) a greater degree of flexibility for the firm in financial planning
• D) relatively high flotation costs

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Definitions:

Statistical Probabilities

A measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Scientific Theories

Well-substantiated explanations of some aspect of the natural world, based on a body of facts that have been repeatedly confirmed through observation and experiment.

Scientific Process

A methodical approach used in scientific inquiry to explore observations, formulating and testing hypotheses, thereby expanding knowledge.

Standardized Procedures

Established methods followed consistently to ensure uniformity and accuracy in tasks.