With respect to creditors and equity investors,which of the following statements is incorrect?
A)Creditors are concerned with assessing the short-term liquidity of a company.
B)Creditors are concerned with assessing the long-term solvency of a company.
C)Equity investors are concerned about dividend payments.
D)Both creditors and equity investors are concerned about profitability.
E)Creditors are more concerned about future security prices than equity investors.

Question

Quizplus · Accepted Answer

Creditors are primarily concerned with the company's ability to repay the loan, while equity investors are concerned with the company's profitability and potential for future growth. Therefore, creditors are not typically concerned about future security prices, as they are more focused on the company's financial stability and ability to repay the loan.

With Respect to Creditors and Equity Investors,which of the Following