Which of the following is true regarding commonstock? a. Dividends, unlike inter

Question

Which of the following is true regarding commonstock?
a. Dividends, unlike interest payments, are not taxdeductible. b. Common stock, unlike bond principal, does not mature. c. Common stockholders are owners of the firm, whereasbondholders are creditors. d. Dividend payments, unlike interest payments, are notfixed. e. All of the above. Which of the following is true regarding commonstock?
a. Dividends, unlike interest payments, are not taxdeductible. b. Common stock, unlike bond principal, does not mature. c. Common stockholders are owners of the firm, whereasbondholders are creditors. d. Dividend payments, unlike interest payments, are notfixed. e. All of the above.

Explanation / Answer

Answer is (c) Common Stockholders are owners of thefirm, whereas bondholders are creditors.

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