Usually, the cost of capital for newly issued stock is ________ the cost of retained earnings
A) lower than
B) higher than
C) same as
D) either higher or lower than
B
You might also like to view...
During the recession phase of the business cycle, households become pessimistic about their future earning capacity as do banks. Nominal interest rates fall during recessions. Mortgage lending could be expected to
A) rise if the change in future earnings is thought to be greater than the change in interest payments. B) stay the same. C) fall. D) fall if the change in future earnings is thought to be greater than the change in interest payments.
The make-up of the Governing Council of the European Central Bank and the methods used to calculate price stability for the monetary system can potentially result in:
A. a policy for the median country rather than a policy well suited for any country. B. monetary policy that is well suited for some countries but ill-suited for others. C. small countries having undue influence on the decisions of the Council. D. all of the results listed are possible.
In the United States, the highest percentage of health care is paid for by:
a. individuals. b. charities. c. private insurance. d. the government.
In the game shown below, firms 1 and 2 must independently decide whether to charge high or low prices.Firm OneFirm Two??High PriceLow Price?High Price(10,10)(5,-5)?Low Price(5,-5)(0,0)Which of the following are the Nash equilibrium payoffs (each period) if the game is repeated 10 times?
A. (10, 10) B. (0, 0) C. (-5, 5) D. (5, -5)