Which of the Following Is NOT an Advantage for a Firm

question 44

Multiple Choice

Which of the following is NOT an advantage for a firm of using equity rather than debt financing?

• A)Lower cost.
• B)Lower risk of insolvency.
• C)Lower funding risks.
• D)No legal liability to pay dividends.
• E)No requirement to repay capital.

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Definitions:

Absolute Threshold

The minimum intensity of a stimulus required for it to be detected by the senses at least 50% of the time.

Difference Threshold

The minimum difference in intensity or quantity required for a person to detect a change between two stimuli.

Separation Threshold

The minimum physical distance or difference that can be discerned between two stimuli.

Absolute Threshold

The smallest intensity of a stimulus that can be detected by the senses at least 50% of the time.