The cost of common stock is usually greater than the simple dividend yield because - 4700

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The cost of common stock is usually greater than the simple dividend yield because 

A) investors perceive risk in common stock. 

B) investors expect both a current dividend and future growth. 

C) dividends are not tax-deductible. 

D) the company must make profits before it can pay dividends. 

 

Answer: B Difficulty: Easy Type: Memorization 

 
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