When a Firm Issues Stock in a Country with Weak

question 21

Multiple Choice

When a firm issues stock in a country with weak laws on corporate disclosure and little legal protection for shareholders, the stock will generally be sold at a relatively ______ price, so the firm incurs a _____ cost of equity. ​

• A) ​low; low
• B) ​low; high
• C) ​high; high
• D) ​high; low

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Definitions:

Sodium Channels

Protein-based channels found in cell membranes that allow sodium ions to flow in and out, critical for generating and transmitting electrical signals.

Membrane Potential

The electrical potential difference across a cell's plasma membrane, crucial for the conduction of impulses in muscle and nerve cells.

Channels

Structures that form pores in the membranes of cells and organelles, allowing the selective passage of ions or molecules across the membrane and thus contributing to vital physiological processes.

Calcium

A chemical element essential for living organisms, including bone formation, blood clotting, and muscle function.