What Is a Drawback of Using Only Equity to Raise

question 57

Multiple Choice

What is a drawback of using only equity to raise capital?

• A) The cost
• B) Fluctuations in the stock market
• C) Dilution of the control of the company
• D) That it will cause EPS to roller coaster
• E) That it doesn't raise as much capital as debt financing

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Time-Consuming

Activities or processes that require a significant amount of time to complete.

Communication Process

The series of steps and stages through which information is transmitted and received between communicators.

Sociopsychological Factors

Elements that influence an individual's behavior and attitudes, combining social and psychological aspects, such as group dynamics and personal motivations.

Zoning

The process of dividing land into zones for different purposes such as residential, commercial, or industrial use, governed by local government regulations.