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Which of the Following Statements Is True

Question 98

Multiple Choice

Which of the following statements is true?


A) the cost of equity is more difficult to derive than the cost of preferred shares.
B) the firm's shares will not be bid up if the firm does not pay dividends.
C) The DDM cannot be used to value companies who do not pay dividends.
D) equity financing will provide the corporation with a tax shield.

Correct Answer:

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