The residual dividend theory is based on the observation that flotation costs make the cost of new
common stock significantly higher than the cost of retained earnings.
Indicate whether the statement is true or false
TRUE
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Which of the following statements regarding reinstatement of a sickness and accident insurance policy is NOT correct?
A) If an application is required, the policy is automatically reinstated 45 days after the application is submitted so long as the application is not approved or disapproved before that time. B) A reinstated policy only covers loss due to sickness for the first 10 days. C) The reinstatement provision must be included in every sickness and accident insurance policy. D) The insurer's acceptance of a late premium without requiring a reinstatement application constitutes automatic reinstatement.
Which of the following is an example of indirect labor in a manufacturing plant?
A) Chief operating officer B) Machine operators C) Salespersons D) Plant managers