Which of the Following Is an Advantage of a Company

question 41

Multiple Choice

Which of the following is an advantage of a company using equity rather than debt to finance a project?

• A)Dividends do not need to be paid.
• B)Interest is tax deductible whereas dividends paid are not.
• C)Dividends always require less cash than does paying interest on debt.
• D)No taxation similar to bonds.

---

Definitions:

Raw Scores

The initial, unaltered scores obtained in an assessment before undergoing any transformation or normalization.

Test-retest Reliability

The consistency of a measure evaluated by testing the same individuals at two different points in time and comparing the scores.

NCE Type Scores

NCE Type Scores, or Normal Curve Equivalent scores, are standardized test scores that range from 1 to 99, representing a test taker's position relative to a norming group on a normal curve.

Internal Consistency

A measure of the reliability of a test or scale; assessing if various items that propose to measure the same general construct produce similar scores.