The Cost of External Equity Is Greater Than the Cost

question 23

Multiple Choice

The cost of external equity is greater than the cost of internal equity because

• A)it decreases the earnings per share.
• B)it increases the market price of the stock.
• C)dividends are increased.
• D)of the flotation or issuance costs.

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Definitions:

Perceptual Abilities

The capacity to perceive, interpret, and understand sensory information.

Color Blindness

A vision deficiency where individuals are unable to distinguish between certain colors, often red and green.

Sex-Linked Inheritance

A mode of inheritance that is determined by genes located on the sex chromosomes, often leading to traits that differ between males and females.

Hues

The attributes of colors that give them their names, such as red, blue, or yellow, distinguishing one color from another.