An Attraction of Internal Equity Is That _____________________ but a Disadvantage

An attraction of internal equity is that _____________________ but a disadvantage is that _____________________________.

A) earnings are increased;dividends to stockholders are reduced
B) the cost of internal equity is very low;earnings are reduced
C) the cost of internal equity is very low;regulatory approval is necessary for the use of internal equity
D) the cost of internal equity is very low;dividends to stockholders are reduced

Correct Answer:

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