Which of the Following Is NOT Considered an Advantage of Going

question 9

Multiple Choice

Which of the following is NOT considered an advantage of going public?

• A)Sharing corporate control with outsiders.
• B)Better access to both equity and debt markets in the future
• C)Better liquidity for the firm's shares
• D)The firm's entrepreneurs have a chance to liquidate part of their investment and diversify.

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Definitions:

Present Value

A payment’s economically equivalent amount at a prior date, allowing for the time value of money.

Compounded Annually

Describes the process of calculating interest on both the initial principal and the accumulated interest from previous periods once a year.

Present Value

The present value of a future amount of money or series of cash flows using a predetermined rate of return.

Perpetuity

A financial term for a stream of cash payments that continue indefinitely.