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Which of the following is false regarding the issue of stock versus the issue of bonds to raise capital?

  • The issuance of stock decreases several important financial ratios.
  • Issuing bonds dilutes the voting power of the stockholders.
  • Corporations are not required to return the investment to the stockholders.
  • Investors expect to earn a higher rate of return on stocks than bonds

 

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M9966500

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