Which of the Following Statements Is True

question 87

Multiple Choice

Which of the following statements is true?

• A)The cost of equity is more difficult to derive than the cost of preferred shares
• B)The firm's shares will not be bid up if the firm does not pay dividends
• C)The DDM cannot be used to value companies who do not pay dividends
• D)Equity financing will provide the corporation with a tax shield

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Definitions:

Real Property

Real property refers to land and anything permanently attached to it, such as buildings or natural resources.

Attached

The act of legally seizing or securing property to ensure the satisfaction of a court judgment or lien.

Exclusive Rights

Legal privileges granted to individuals or entities, allowing them to use, produce, or sell a particular product or service without competition.

Airspace

The space above the earth's surface that is available for aircraft to fly through, often regulated by a sovereign entity.