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    Foundations of Financial Management Study Set 1
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    Exam 11: Cost of Capital
  5. Question
    New Common Stock Is More Expensive Than K<sub>e</sub>
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New Common Stock Is More Expensive Than Ke

Question 9

Question 9

Multiple Choice

New common stock is more expensive than ke:


A) to compensate for risk.
B) to compensate for more dividends.
C) to compensate for expansionary problems.
D) to cover distribution costs.

Correct Answer:

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