According to survey results, which of the following seems to be a common belief held by CFOs?
A) It is best to repurchase shares when the stock price has increased in value in order to maintain the firm's capital structure.
B) Earnings dilution isn't an important issue because the funds generated with a new equity issue will be used to increase earnings per share.
C) Dividends are more attractive to tax-exempt institutional investors than they are to individual retail investors.
D) It is possible to forecast market interest rates accurately enough to be able to issue debt when interest rates are somewhere near their lowest levels.
Correct Answer:
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