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A Corporation May Be Reluctant to Raise Capital by Issuing

Question 116

Multiple Choice

A corporation may be reluctant to raise capital by issuing stock because


A) issuing stock to obtain money for investment is riskier than selling bonds.
B) holders of already-existing stock will gain more voting power in the corporation.
C) obtaining government permission to issue stock can be time-consuming and expensive.
D) All of the above are correct.

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