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  3. Study Set
    Principles of Managerial Finance
  4. Exam
    Exam 9: The Cost of Capital
  5. Question
    Since Retained Earnings Is a More Expensive Source of Financing
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Since Retained Earnings Is a More Expensive Source of Financing

Question 100

Question 100

True/False

Since retained earnings is a more expensive source of financing than debt and preferred stock, the weighted average cost of capital will fall once retained earnings have been exhausted.

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