Question
Multiple question: A company's quarterly income statements show that in the last three quarters both sales revenue and net income have been growing. Which of
Multiple question:
A company's quarterly income statements show that in the last three quarters both sales revenue and net income have been growing. Which of the following statements is not true?
1. Investors are likely to conclude that the company will be better able to pay dividends in the future, making it more attractive as a potential investment.
2. Investors are likely to conclude that the stock price is likely to rise, making the company more attractive as a potential investment.
3. Creditors are likely to conclude that the risk of lending to the company is rising and higher interest rate is needed.
4. Creditors are likely to conclude that the risk of lending to the company is falling and be willing to accept a lower interest rate on loans.
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