Which of the Following Is Not True Regarding Stock Issuances

question 88

Multiple Choice

Which of the following is not true regarding stock issuances?

• A) They are always better than debt for raising capital.
• B) Their effect on stock price is a concern.
• C) They can leave a company vulnerable to a hostile takeover.
• D) Dilution of ownership is a special concern.
• E) All of the above statements are true.

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Definitions:

Inventory Turnover Rate

A financial metric measuring how often a company's inventory is sold and replaced over a period.

Sales

The total amount of goods or services sold within a specific time frame, indicating the performance and growth of a business.

Operating Cycle

The duration from the acquisition of supplies for production to the collection of payment from the sale of goods, indicating the company's efficiency in managing its inventory and receivables.

COGS

Cost of Goods Sold; the direct costs attributable to the production of the goods sold by a company.