Which of the following statements about stock-issuing firms is FALSE?

A. Firms that pay dividends cannot lose money for their investors because the stockholders can at least count on the dividend payment every year.
B. Firms that issue new stock a second time are making a secondary public offering.
C. Firms that issue stock are participating in the equity credit channel.
D. Firms that issue stock for the first time do so through an initial public offering, handled by an investment bank.


Answer: A

Economics

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In industries in which strong network effects exist, which industry structure is likely to emerge?

A) perfect competition B) monopoly C) monopolistic competition D) oligopoly

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Keynesian policies are ineffective at combating stagflation because stagflation is caused by: a. budget surpluses

b. decreases in aggregate supply. c. trade deficits. d. decreases in aggregate demand. e. budget deficits.

Economics

Changes in short-run total costs result from changes in

A. The price elasticity of demand. B. Profit. C. Variable costs. D. Fixed costs.

Economics