Which of the following statements is TRUE?
A) Issuing equity automatically hurts existing shareholders.
B) Equity is less expensive than debt because of the dividend tax shield found with equity.
C) If a firm takes on a positive NPV project financed with new equity, existing shareholders will benefit.
D) All of the above are true.
C
You might also like to view...
The four major ways to collect data are: have a person ask the questions, have a computer assist or conduct the questioning, allow the respondents themselves to complete the survey or use some combination of the first three
Indicate whether the statement is true or false
Which of the following is an example of consumer-generated marketing?
A) Cristal, a jewelry store, uses its page on Facebook to provide information about its upcoming products to its customers. B) Figa, a leading provider of athletic shoes, helps its customers customize their shoes on its Web site and choose personalized settings. C) Fun & Run, a local amusement park, promotes its services by allowing consumers to upload videos and write reviews about the park. D) Barton's, a local pet supply store, rewards frequent buyers with vouchers and exclusive offers. E) Energix, a manufacturer of soft drinks, attracts customers through televised advertisements.