Which of the Following Is an Advantage for a Firm

question 81

Multiple Choice

Which of the following is an advantage for a firm to issue common stock over long-term debt?

• A) the cost of equity financing being less than the cost of debt financing
• B) the primary claim of equityholders on income and assets in the event of liquidation
• C) no maturity date on which the par value of the issue must be repaid
• D) the tax deductibility of dividends which lowers the cost of equity financing

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Definitions:

Defined Names

In spreadsheet applications, user-assigned names to cells, ranges, formulas, or constants to make referencing them easier and more intuitive.

CONCAT Function

The CONCAT Function is used in spreadsheet programs to join two or more text strings into one string, facilitating the combination of data from different cells.

Editing Language

Editing language refers to the language settings that determine the spell check, grammar, and dictionary functionalities in word processing and other editing software.

Active Cell

The cell in a spreadsheet program that is currently selected or highlighted and ready for data entry or processing.