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How Would a Sustained Increase in the Market Price of Its

Question 47

Multiple Choice

How would a sustained increase in the market price of its shares directly benefit a publically traded company?


A) It will be able to lower the dividend yield on its preferred shares.
B) It will be able to borrow larger sums from other companies.
C) It would be able to borrow larger sums from banks.
D) It could sell any shares it owns in itself at the higher valuation.

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