With regard to the ongoing expense of long-term corporate financing, which of the following would be the least expensive?

Question

Quizplus · Accepted Answer

Common stock is the least expensive long-term financing option because it does not involve paying interest or principal payments like loans and bonds. However, it does involve giving up ownership and potential control of the company to shareholders. Trade credit is not a form of long-term financing, but rather a short-term financing option.

With Regard to the Ongoing Expense of Long-Term Corporate Financing