Question

When sales and earnings of a company is relatively stable it prefers to issue___.            ​

Answer 1

valuation ratio

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Answer 2

Answer:

firm's common stockholders.

2. a. Fixed costs are operating costs that are independent of sales levels in the short-run. These costs are primarily related to the passage of time. Examples include depreciation, rent, insurance, lighting and heating costs, property taxes, and the salaries of management.

b. Variable costs are operating costs that move in close relationship to changes in sales. Variable

costs are related to the output produced and sold, rather than the passage of time. Examples

include raw material costs, direct labor costs, and salespersons' commissions.