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    Exam 18: Capital Structure and the Cost of Capital
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    When Retained Earnings Are Used Up and New Common Stock
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When Retained Earnings Are Used Up and New Common Stock

Question 11

Question 11

Multiple Choice

When retained earnings are used up and new common stock is issued, we know that the cost of:


A) equity has increased
B) equity has dropped
C) equity is unaffected
D) both common and preferred stock are affected

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