Question: Which statement is true? A. As a general rule, a lower beta indicates a less risky stock. B. A corporation with positive net income must

Which statement is true? A. As a general rule, a lower beta indicates a less risky stock. B. A corporation with positive net income must pay a dividend to its common shareholders. C. Financial intermediation necessarily involves a financial institution. D. Shareholders must vote by proxy. Reset Selection Question 5 of 50 2 Points The cost of equity is greater than the cost of debt because... A. equity has the prior claim on cash flows of the corporation. B. interest on debt is tax deductible. O C. both a. and b. OD. neither a nor b. Reset Selection

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