Which one of the following statements regarding stock issuances is true?
A) They are not always better than debt for raising capital.
B) Their effect on stock price is not a concern.
C) They do not require a company to share future earnings with new shareholders.
D) Dilution of ownership is not a special concern.
E) None of these statements regarding stock issuance is true

Question

Quizplus · Accepted Answer

Stock issuances may not always be better than debt for raising capital as there could be different considerations such as cost of capital, market conditions, and shareholder dilution.

Which One of the Following Statements Regarding Stock Issuances Is