Two Considerations That Cause a Corporation's Cost of Capital to Be

question 67

Multiple Choice

Two considerations that cause a corporation's cost of capital to be different than its investors' required returns are

• A) corporate taxes and flotation costs.
• B) individual taxes and corporate taxes.
• C) individual taxes and dividends.
• D) corporate taxes and the earned income tax credit.

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Definitions:

False Imprisonment

The act of detaining an individual unlawfully or without their consent, violating their personal freedom.

Moral Pressure

A form of persuasion that appeals to a person's sense of right and wrong to encourage a particular action or decision.

Physical Restraint

Physical Restraint involves the use of physical measures or devices to limit an individual's movements for safety or control reasons.

Innocent Dissemination

A defense in libel and defamation cases, arguing that the distributor of the defamatory material was unaware of its content and thus not liable.