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

---

Definitions:

Chapter

A division of a book typically with a number or title, often starting on a new page.

Employment History

A record of a person's work experience, including positions held, durations, and responsibilities.

Political Science

The study of politics, government systems, and political behavior.

Semester Abroad

An educational program allowing students to study at a foreign institution for one semester as part of their degree.