The more profits are reinvested into the firm, the
A) less there is available to distribute to bondholders.
B) less there is available to distribute to stockholders.
C) more the firm will be able to raise in sales of new issues to stock.
D) more bonds the firm will sell in order to pay their required dividends to preferred stockholders.
B
You might also like to view...
Refer to Figure 2-2. The linear production possibilities frontier in the figure indicates that
A) it is progressively more expensive to produce orchids. B) the tradeoff between roses and orchids is constant. C) Vidalia has a comparative disadvantage in the production of roses. D) Vidalia has a comparative advantage in the production of orchids.
Before 1980, most U.S. corporations raised funds
A) in U.S. stock and bond markets or in foreign capital markets. B) in U.S. banks or in foreign capital markets. C) in U.S. stock and bond markets or in U.S. banks. D) in U.S. and foreign banks.