Firms Prefer Not Paying _____If It Avoids Selling New Stock

question 57

Multiple Choice

Firms prefer not paying _____if it avoids selling new stock, because _____cost less than new equity.

• A)dividends; retained earnings
• B)cash; dividends
• C)dividends; dividends
• D)retained earnings; dividends

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Definitions:

Shift Strategy

A cognitive approach to changing the method or perspective used when solving problems or making decisions.

Lesion

Any damage or abnormal change in the tissue of an organism, usually caused by disease or trauma.

Temporal Cortex

A region of the cerebral cortex located on the sides of the brain, involved in processing auditory information and encoding memory.

Wisconsin Card Sorting Test

A neuropsychological test that measures an individual's ability to form abstract concepts and shift problem-solving strategies.