Question
The common stock of a company must provide a higher expected return than the debt of the same company because a) there is less demand
The common stock of a company must provide a higher expected return than the debt of the same company because
a) there is less demand for stock than for bonds.
b) there is greater demand for stock than for bonds.
c) there is more systematic risk involved for the common stock.
d) there is a market premium required for bonds.
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Fundamentals of Financial Management
Authors: Eugene F. Brigham
Concise 9th Edition
1305635937, 1305635930, 978-1305635937
