Which of the following is a reason for issuing preference shares?
A) Unlike bonds,the issuing firm is not obliged to pay any fixed amount.
B) It is cheaper to issue preference shares than to issue ordinary shares or bonds.
C) It improves operating income of the issuing firm.
D) It reduces the financial leverage of the firm.
Correct Answer:
Verified
Q9: Which of the following is true of
Q10: Ordinary shares are:
A)investments in which the investors
Q11: Mezzanine financing:
A)provides funds for firms that have
Q12: What are preference shares? Why do firms
Q13: Which of the following is true of
Q14: What are the benefits for a firm
Q15: Which of the following is a disadvantage
Q16: Material information is information that:
A)if omitted in
Q17: If the managers of a firm,which issues
Q18: Which of the following is true of
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