An Attraction of Internal Equity Is That _____________________ but a Disadvantage

question 23

Multiple Choice

An attraction of internal equity is that _____________________ but a disadvantage is that _____________________________.

• A)earnings are increased;dividends to stockholders are reduced
• B)the cost of internal equity is very low;earnings are reduced
• C)the cost of internal equity is very low;regulatory approval is necessary for the use of internal equity
• D)the cost of internal equity is very low;dividends to stockholders are reduced

---

Definitions:

P-Value

Represents the probability of observing test results at least as extreme as the ones observed, under the assumption that the null hypothesis is true.

Hypothesis Testing

The process of making decisions or inferences about a population based on sample data, often involving the use of a statistical test.

Test Statistic

A measure calculated from sample data during a hypothesis test used to determine whether to reject the null hypothesis.

T-Distribution

A probability distribution that arises when estimating the mean of a normally distributed population in situations where the sample size is small and population standard deviation is unknown.