Which of the Following Statements Is Correct

question 5

Multiple Choice

Which of the following statements is correct?

• A) The flotation-adjusted cost of equity will always be less than the cost of equity that has not been adjusted for flotation costs.
• B) The flotation-adjusted cost of equity will always be more than the cost of equity that has not been adjusted for flotation costs.
• C) The flotation-adjusted cost of equity may be more than or less than the cost of equity that has not been adjusted for flotation costs.
• D) None of these choices are correct.

---

Definitions:

Union Recognition

The formal acknowledgment by an employer that a labor union represents the collective interests of its workers, often followed by collective bargaining.

Better Wages

An improvement in the compensation that workers receive for their labor, often a key objective of labor unions and worker advocacy groups.

National Labor Relations Act

A foundational piece of U.S. legislation, established in 1935, that protects workers' rights to organize, to bargain collectively, and to engage in other activities related to collective bargaining and mutual aid.

Employer's Willingness

An indication of how open or receptive an employer is to engaging in practices such as negotiations, improvements, or concessions in the workplace.