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If the dividend rate on preferred stock is lower than the rate the corporation earns on its assets, the effect of issuing preferred stock is to multiple choice increase the rate earned by common shareholders.
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If the dividend rate on preferred stock is lower than the rate the corporation earns on its assets, the effect of issuing preferred stock is to multiple choice increase the rate earned by common shareholders. decrease the rate earned by common shareholders. increase the rate earned by preferred shareholders. decrease the rate earned by preferred shareholders.

User Gaurav Pandvia
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19 votes

A) increases the rate earned by common shareholders

User Orad
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