Generally, the order of cost, from the least expensive to the most expensive, for long-term capital of a corporation is
A. new common stock, retained earnings, preferred stock, long-term debt.
B. common stock, preferred stock, long-term debt, short-term debt.
C. preferred stock, retained earnings, common stock, new common stock.
D. long-term debt, preferred stock, retained earnings, new common stock.
Answer:D
Generally, the order of cost, from the least expensive to the most expensive, for long-term capital of a corporation is
A. new common stock, retained earnings, preferred stock, long-term debt. B. common stock, preferred stock, long-term debt, short-term debt. C. preferred stock, retained earnings, common stock, new common stock. D. long-term debt, preferred stock, retained earnings, new common stock.