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Other Things Constant, the More Profitable a Corporation Is

Question 180

Multiple Choice

Other things constant, the more profitable a corporation is,

A) the lower the value of its shares on the stock market and the lower the interest rate that would have to be paid on new bond issues
B) the higher the value of its shares on the stock market and the higher the interest rate it would have to pay on new bond issues
C) the higher the value of its shares on the stock market and the lower the interest rate that would have to be paid on new bond issues
D) the lower the value of its shares on the stock market and the higher the interest rate that would have to be paid on new bond issues
E) the lower the interest rate that would have to be paid on new bond issues; the value of its shares on the stock market does not vary

Correct Answer: