In a Recent Comprehensive Survey,corporate CFOs Were Asked Why They

question 1

Multiple Choice

In a recent comprehensive survey,corporate CFOs were asked why they did NOT use more equity in their capital structure.Which of the following choices was NOT cited by 50% or more of the CFOs responding to the survey?

• A)EPS dilution
• B)Concerns that equity was not the least expensive form of financing
• C)Concerns that share price might decline
• D)All of the above were cited by at least 50% of the responding CFOs.

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Definitions:

Flexible Budget

A budget that adjusts or changes based on the actual activity level or volume of work done, allowing for better control and planning.

Units

Basic measures of quantity or amount in specific contexts, such as inventory units in manufacturing or business.

Medical Supplies

Items used in the medical field for treatment, diagnosis, or preventive care, including bandages, syringes, and diagnostic kits.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity.