Which of the following statements is false?
A) Borrowing is a more expensive source of finance than issuing ordinary shares
B) Borrowing can increase returns to the shareholder
C) Borrowing is a cheaper source of finance than issuing ordinary shares
D) Shareholders expect a higher rate of return because they take more risk than lenders
Correct Answer:
Verified
Q2: The total figure for equity on the
Q3: A company can reduce its share capital
Q4: Which of the following statements is false?
A)
Q5: The three main sources of funds for
Q6: Large company agrees to pay £1,750,000 to
Q7: An easy way for companies to raise
Q8: Retained earnings do not contribute towards financing
Q9: Which of the following statements is correct?
A)
Q10: Preference shares are excluded in the calculation
Q11: A business can raise finance by selling
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