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    Principles of Corporate Finance Study Set 4
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    Exam 9: The Cost of Capital
  5. Question
    The Cost of Retained Earnings Is
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The Cost of Retained Earnings Is

Question 69

Question 69

Multiple Choice

The cost of retained earnings is


A) equal to the cost of common stock equity.
B) zero.
C) equal to the cost of a new issue of common stock.
D) irrelevant to the investment/financing decision.

Correct Answer:

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