A hostile takeover occurs when the managers of the potentially acquired or merged company oppose the merger and/or acquisition. Select one: True False A stock dividend and a stock split should, at least conceptually, have the same effect on shareholders' wealth. Select one: True False Synergy and diversification are reasons as to why companies merge. Select one: True False ks is: O a. is the marginal cost of common equity from issuing new stock. O b. is the marginal cost of debt. O c. is the marginal cost of preferred equity. O d. is the marginal cost of preferred equity using retained earnings. e. the marginal cost of common equity using retained earnings. CLEAR MY CHOICE Why is there a cost for retained earnings? O a. Because there is no opportunity cost if earnings are retained. O b. Because investors cannot buy other securities, earn a return. O c. Because earnings cannot be reinvested or paid out as dividends. O d. Because there is an opportunity cost if earnings are retained. CLEAR MY CHOICE Opportunity cost: The return stockholders could earn on alternative investments of equal risk. Select one: True O False