With regard to the ongoing expense of long-term corporate financing, which of the following would be the least expensive?
A) Long-term loans
B) Corporate bonds
C) Debenture bonds
D) Common stock
E) Trade credit

Question

Quizplus · Accepted Answer

Common stock is the least expensive as it does not involve any interest payments or obligations to pay back the principal amount. The cost to the company is the dividend paid to shareholders, which can be adjusted as per the company's financial performance.

With Regard to the Ongoing Expense of Long-Term Corporate Financing