Which of the Following Is False Regarding the Issue of Stock

question 81

Multiple Choice

Which of the following is false regarding the issue of stock versus the issue of bonds to raise capital?

• A)The issuance of stock decreases several important financial ratios.
• B)Issuing bonds dilutes the voting power of the stockholders.
• C)Corporations are not required to return the investment to the stockholders.
• D)Investors expect to earn a higher rate of return on stocks than bonds.

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Definitions:

Constructs

Theoretical concepts that are used to understand or explain behaviors, attributes, or phenomena within various fields of study.

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Statements or assertions that express judgments or opinions which can be validated by evidence or truth.

Kerlinger and Lee

Authors known for their contributions to social sciences research methodology, particularly in the field of behavioral studies.

Interrelated Constructs

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