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To Finance Their Business Activities,many Corporations Prefer Selling Common Stock

Question 58

Multiple Choice

To finance their business activities,many corporations prefer selling common stock because:


A) it does not have to be repaid until 10 to 15 years after it has been issued.
B) interest payments to stockholders are lower than interest paid to a bank.
C) common shareholders have no voting rights.
D) interest paid to stockholders is tax deductible.
E) the money obtained from stockholders does not have to be repaid.

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