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When a Firm Issues Stock in a Country with Weak

Question 65

Multiple Choice

When a firm issues stock in a country with weak laws on corporate disclosure and little legal protection for shareholders, the stock will generally be sold at a relatively ______ price, so the firm incurs a _____ cost of equity. ​


A) ​low; low
B) ​low; high
C) ​high; high
D) ​high; low

Correct Answer:

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