Solved

A Company's Quarterly Income Statements Show That in the Last

Question 93

Multiple Choice

A company's quarterly income statements show that in the last three quarters both sales revenue and net income have been growing.Which of the following statements is not true?


A) Creditors are likely to conclude that the risk of lending to the company is falling and be willing to accept a lower interest rate on loans.
B) Investors are likely to conclude that the stock price is likely to rise,making the company more attractive as a potential investment.
C) Investors are likely to conclude that the company will be better able to pay dividends in the future,making it more attractive as a potential investment.
D) Creditors are likely to conclude that the risk of lending to the company is rising and higher interest rate is needed.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents