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Other Fields Homework Help Business Topic started by: papahomer on May 31, 2017



Title: Profitable companies often prefer to issue debt rather than preferred stock because
Post by: papahomer on May 31, 2017
Profitable companies often prefer to issue debt rather than preferred stock because
A) debt creates less risk for the company.
B) interest payments are fixed but preferred shareholders expect dividends to grow.
C) preferred shares dilute the voting rights of common shareholders but bonds do not.
D) interest on debt is deductible for tax purposes, but preferred dividends are not.


Title: Re: Profitable companies often prefer to issue debt rather than preferred stock because
Post by: David_hess on May 31, 2017
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