The quantity of loanable funds available to a corporation depends on the
A)Dividends the company is willing to pay.
B)Present worth of the company's dividends.
C)Price of its stock.
D)Interest rate the company is willing to offer.

Question

Quizplus · Accepted Answer

The quantity of loanable funds available to a corporation depends on the interest rate the company is willing to offer. This is because investors or lenders are more likely to lend funds to a corporation if they will receive a higher return on their investment in terms of interest payments. The other options listed, such as dividends and the price of the company's stock, may impact the overall financial health of the corporation, but do not directly determine the quantity of loanable funds available.

The Quantity of Loanable Funds Available to a Corporation Depends