Which of the Following Is Not True Regarding Common Stock

question 28

Multiple Choice

Which of the following is not true regarding common stock?

• A) Common stock has no maturity.
• B) New issues of common stock may dilute existing shareholder equity.
• C) Common stock is a permanent source of funds.
• D) Dividends paid are not tax-deductible.
• E) Dividends are considered a fixed charge that must be paid.

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