Which of the Following Is a Basic Source of Funds

question 57

Multiple Choice

Which of the following is a basic source of funds for a firm?

• A) Debt
• B) Equity
• C) Asset liquidations
• D) Both A and B

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Definitions:

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, usually with predetermined dividend payments.

Dividend Per Share

The amount of dividend that a company pays out for each share of its stock.

Rate Of Return

Accumulation or reduction in the investment value over a chosen interval, denoted as a percentage of the investment's root cost.