For a Corporation Such as AT&T, What Are the Two

question 114

Multiple Choice

For a corporation such as AT&T, what are the two primary advantages of equity financing?

• A) It never has to be paid back and flotation costs are low.
• B) There is no obligation to pay dividends or to repay the money obtained from the sale of stock.
• C) Interest payments are less than debt financing and principal does not have to be repaid.
• D) Ownership is spread among many individuals and no interest payments are required.
• E) Investors pay top dollar for stock issues and the corporation has higher ongoing expenses.

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Definitions:

Individual Variation

Differences in characteristics, behavior, or responses among individuals of a population or species.

Novel Stimulation

New or unfamiliar stimuli that attract attention or elicit a response due to their difference from previous experiences.

Cognitive Dissonance

A psychological state of discomfort experienced when holding two or more conflicting cognitions (beliefs, attitudes, or behaviors).

Facial-Feedback

The hypothesis that facial expressions can influence emotional experiences, suggesting that smiling can make one feel happier.