Acquiring funds through equity financing requires the firm to pay annual dividends.

Name: Acquiring funds through equity financing requires the firm to pay annual dividends.
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Question

Quizplus · Accepted Answer

Acquiring funds through equity financing does not require the firm to pay annual dividends. Dividends are only paid at the discretion of the company's board of directors. However, not paying dividends may impact the attractiveness of the company's stock for investors.

Acquiring Funds Through Equity Financing Requires the Firm to Pay