Which of the Following Factors Favor the Issuance of Equity

question 5

Multiple Choice

Which of the following factors favor the issuance of equity in the financing decision?
I.Market signaling
II.Distress costs
III.Management incentives
IV.Financial flexibility

• A) I and II only
• B) I and III only
• C) II and IV only
• D) II, III, and IV only
• E) I, II, and IV only
• F) None of the above.

---

Definitions:

Precious Metals

Metals of high economic value, such as gold, silver, and platinum, often used as investments or in manufacturing.

Limited In Supply

A condition where the availability of a product or resource is restricted in quantity, often leading to increased prices or allocation challenges.

Unit Of Account

A standard numerical monetary unit of measurement that provides a consistent way of valuing goods, services, assets, or liabilities within an economy.

Intrinsic Worth

Intrinsic Worth is the inherent value of something, recognized independently of its value to others or practical utility.