dividends are a percentage of the market value of the preferred stock payment of dividends is legally guaranteed to shareholders each year, Question 16 2 pts A corporation issued common stock instead of debt to finance the purchase of non-depreciable property. Which statement is true? Ownership by existing shareholders will be diluted. The company's debt/equity ratio will be higher. Income tax expense will be lower because expenses increase. Net income will be lower. Question 17 2 pts