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An Advantage of Owning Stock in a Corporation as Opposed

Question 95

Multiple Choice

An advantage of owning stock in a corporation as opposed to being a bondholder is that


A) stocks carry a guaranteed dividend
B) stock dividends are paid out of corporate profits before the bondholders are paid
C) stockholders' dividends are linked to the size of the corporation's profits
D) bonds carry more risk
E) bond payments are not guaranteed by the government

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