Which of the Following Is NOT True Regarding Common Stock

question 50

Multiple Choice

Which of the following is NOT true regarding common stock?

• A) Dividends, unlike interest payments, are not tax deductible.
• B) Common stock, unlike bond principal, does not mature.
• C) Common stockholders are owners of the firm, whereas bondholders are creditors.
• D) Dividend payments, like interest payments, are fixed.

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