how might stock issues be preferable to borrowing money for firms looking to finance operations? a firms…

how might stock issues be preferable to borrowing money for firms looking to finance operations? a firms might want to avoid paying interest charges. b firms might want the cash on hand faster by agreeing to loans. c firms might seek relief from creditors by passing the debt to investors. d firms might have increased oversight from and payments of dividends to investors.

how might stock issues be preferable to borrowing money for firms looking to finance operations? a firms might want to avoid paying interest charges. b firms might want the cash on hand faster by agreeing to loans. c firms might seek relief from creditors by passing the debt to investors. d firms might have increased oversight from and payments of dividends to investors.

Answer

Brief Explanations:

When a firm issues stocks instead of borrowing, it doesn't have to pay interest on loans. Loans come with fixed - interest obligations, while stocks don't. Option B is incorrect as borrowing usually gets cash faster. Option C is wrong as stock issuance isn't about passing debt to investors. Option D lists drawbacks of stocks, not advantages.

Answer:

A. Firms might want to avoid paying interest charges.