Ostroff, Fair and Company
*Ostroff, Fair and Company>>>Investing

The disadvantages of selling stock to obtain long-term financing include:?


# a. the legal obligation to pay dividends if the company is profitable.

# b.the funds contributed by stockholders must be repaid from after tax profits.

# c.a reduction in the market value of the firm's products.

# d.a possible change in management and policies in the company.


Please let me know which answer it is

So, which on-line degree mill are you with?
D

A - dividends are not obligatory
B - stockholders are only repaid if the company is dissolved
C - stock price does not change products' sale prices
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