If Flotation Costs Go Down, the Cost of New Preferred

question 102

Multiple Choice

If flotation costs go down, the cost of new preferred stock will

• A) go up.
• B) go down.
• C) stay the same.
• D) slowly increase.

---

Definitions:

Appeal to Ignorance

A logical fallacy in which a claim is accepted as true or false based on the absence of evidence to the contrary.

Cognition

The act of comprehension and learning achieved through mental engagement, life experiences, and sensory input.

Out of Character

Behavior that is not typical for a person, deviating from how they usually act or are expected to behave.

Macular Degeneration

A medical condition that results in blurred or no vision in the center of the visual field due to damage to the macula of the retina.