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:

Linguistic Relativity

The idea that language to some extent shapes the way in which people perceive and think about the world.

Aymara Language

A Native South American language spoken by the Aymara people in Bolivia, Peru, and Chile.

Highland Bolivia

Pertains to the geographic and cultural region of Bolivia that is characterized by elevated terrain, including the Andes Mountains, with distinct indigenous cultures and historical developments.

Proxemics

The study of how humans use space in communication and interaction, including personal distance zones and the implications of physical space on social interactions.