Question

With regard to ongoing expenses, the most expensive type of long-term financing is the sale of common stock. Answer

Answer 1

False,...................

Answer 2

Answer:

False

Explanation:

sale of stock as a means of a long term financing ( getting capital for a business for a long term) this is usually over a year . stocks come with a higher return on investment for the purchaser of the stock rather than the purchaser of a Bond. this means when a stock is sold as a means of long-term financing the issuer of the stock will pay the purchaser a more higher return on investment over the long-term. so it is better for the issuer to sale stock as means of financing long-term because it is a means of acquiring equity for the business while sell of Bonds is means that acquires debt for the company/organization.

the sale of bonds as a long - term means of financing is more expensive because it is a note promising to pay the purchaser at certain percent at a certain time regardless of whatever happens it is like a debt owed than the sale of stocks for same purpose.