Corporations Prefer Bonds Over Preferred Stock for Financing Their Operations

question 57

Multiple Choice

Corporations prefer bonds over preferred stock for financing their operations because

• A) preferred stocks require a dividend.
• B) bond interest rates change with the economy, while stock dividends remain constant.
• C) the after-tax cost of debt is less than the cost of preferred stock.
• D) None of these options are true.

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Definitions:

Canada Health Infoway

A not-for-profit organization tasked with accelerating the development and adoption of modern electronic health information systems across Canada.

Telehealth Technologies

Digital tools and platforms that enable healthcare delivery and patient care remotely, including consultations, monitoring, and education services.

Low Health Literacy

The limited ability to understand and use health-related information and services, affecting an individual's health decisions and outcomes.

Application Software

Computer programs that allow someone using a computer to perform functions or work tasks.