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:

Cognitive Dissonance

A psychological state of tension that occurs when an individual holds two conflicting thoughts, beliefs, attitudes, or values at the same time.

Techniques of Persuasion

Methods or strategies used to convince or influence others to change their attitudes, beliefs, or actions.

Compliance

The act of conforming to or following rules, standards, or laws.

Resist

To withstand, strive against, or oppose a force or influence.