Which of the following is not an advantage of common stock financing?
A)no fixed dividend obligation
B)can lower the firm's weighted cost of capital
C)allows the firm a greater degree of flexibility in financial planning
D)involves relatively high flotation costs

Question

Quizplus · Accepted Answer

Common stock financing involves relatively high flotation costs, which can make it a less desirable option compared to other sources of financing. The other options listed are all advantages of common stock financing.

Which of the Following Is Not an Advantage of Common