Question
Which of the following are correct statements: a) One disadvantage of equity financing is the legal obligation to pay dividends. b) One disadvantage of debt
Which of the following are correct statements:
a) One disadvantage of equity financing is the legal obligation to pay dividends. | |
b) One disadvantage of debt financing is the legal obligation to pay interest as well as principal to amortize the debt. | |
c) One good thing about issuing stock is that the dividends are tax deductible. | |
d) One good thing about issuing bonds is that the interest paid is tax deductible. e) The Troubled Asset Relief Program of $700 Billion that Congress passed in response to the recent financial crisis was strictly used to bolster and bail out banks. |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started