Which of the following is NOT a sensible reason for a firm to rely on internal funds?
A) Equity issues are generally expensive.
B) A new bond issue may drive the firm's debt ratio too high.
C) Financial markets interpret the issuance of equity unfavorably.
D) All of the these are sensible reasons to rely on internal funds.
Correct Answer:
Verified
Q1: As a provider of funds to a
Q3: Shares of stock that have been repurchased
Q7: The maximum number of shares that can
Q8: Internally generated cash is calculated as:
i.retained earnings;
Q9: Generally, nonfinancial U.S. corporations have financed their
Q9: Recently,which of the following sources of funds
Q10: Investors who purchased shares from the Facebook
Q11: Typically,the book value of shareholders' equity equals:
A)total
Q19: Shares held by investors are known as
A)issued
Q20: The change in a firm's retained earnings
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