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Which of the following is a true statement? A. A corporation generally obtains equity capital from bondholders. B. A corporation must issue either preferred stock

Which of the following is a true statement?

A. A corporation generally obtains equity capital from bondholders.

B. A corporation must issue either preferred stock or common stock but not both.

C. When a corporation is experiencing financial problems, an investor should purchase common rather than preferred stock.

D. Most corporations sell options to satisfy a large part of their financing needs.

E. A stock split may not cause a stock's value to increase.

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