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Since Retained Earnings Are Viewed as a Fully Subscribed Issue

Question 137

Multiple Choice

Since retained earnings are viewed as a fully subscribed issue of additional common stock, the cost of retained earnings is


A) greater than the cost of new common stock equity.
B) less than the cost of new common stock equity.
C) not related to the cost of new common stock equity.
D) equal to the cost of new common stock equity.

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