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Which of following is/are correct regarding stocks? Choose all correct answers. a. An already public company...

Which of following is/are correct regarding stocks? Choose all correct answers.

a. An already public company issuing more shares to raise capital is referred to as an SEO.
b. Stocks are generally riskier than bonds.
c. Bondholders are the residual claimants of corporations' cash flows.
d. Average dividend payout ratio of U.S. companies has been increasing over time.
e. Stock splits reduce corporations' market capitalization.

Solutions

Expert Solution

Correct:

A. An already public company issuing more share to raise capital is referred to as an SEO.

B. Stocks are generally risker than bonds.

E. Stock splits reduce corporations Market capitalization.

jeff jeffy answered 2 years ago
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