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:

Ventilator

A medical device that supports breathing by moving breathable air into and out of the lungs.

Sternal Notch

The visible dip at the top of the sternum between where the collarbones meet at the base of the neck.

Tracheostomy Tube

A tube inserted through a surgically created hole in the front of the neck and into the trachea to aid in breathing.

Hyperoxygenating

The process of increasing the amount of oxygen in the blood or tissues, often used in medical treatments to enhance oxygenation in patients.