The cost of newly issued common stock is greater than the current cost common equity because of
A) capital gains taxes on retained earnings.
B) flotation costs on newly issued common stock.
C) capital gains taxes on newly issued common stock.
D) all of the above
Answer: B
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The disclosure of fraud to parties other than the entity's senior management and its audit committee ordinarily would be precluded by the auditor's ethical or legal obligations of confidentiality. However, the auditor has a duty to disclose the information to parties outside the entity in all of the following circumstances except:
A) A court subpoena in conjunction with a fraud investigation. B) A successor auditor makes inquiries in determining whether to accept the engagement. C) A Wall Street analyst inquiry regarding future profit projections. D) To comply with legal or regulatory requirements.
Considering Hofstede's notion of culture as "the collective programming of the mind," then attitudes can be defined as:
A) a learned tendency to respond in a consistent way to a given object or entity. B) an organized pattern of knowledge that an individual holds to be true about the world. C) an enduring belief or feeling of a specific mode of conduct. D) a personally or socially preferable mode of conduct. E) the deepest level of a culture present in the majority of the members of a particular culture.