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

---

Definitions:

Projected Visuals

Visual aids displayed via projection equipment to enhance understanding or retention of spoken or written information.

Monotonous

Describes a lack of variety and interest, often leading to boredom; can refer to sounds, visuals, or tasks that are all too uniform.

Tempo

The speed at which a piece of music is played or the pace of an activity or process.

Pitch

The quality of a sound governed by the rate of vibrations producing it; the highness or lowness of a tone.