All of the Following Are Advantages of Going Public EXCEPT

question 82

Multiple Choice

All of the following are advantages of going public EXCEPT

• A) More funds are available to publicly traded firms.
• B) The fact that a company is public helps in bank negotiations and marketing.
• C) Publicly traded stocks afford the stockholders more liquidity.
• D) The firm must disseminate more information to the public on corporate affairs.

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Definitions:

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its share price.

Real Rate of Return

The annual percentage return realized on an investment, adjusted for changes in prices due to inflation or other external factors.

Inflation Rate

The pace at which prices for goods and services elevate overall, causing the value of purchasing power to drop.

Risk-Free Asset Return

Risk-Free Asset Return denotes the amount of return expected from an investment with no risk of financial loss, typically associated with government bonds.