Which of the Following Differentiates the Cost of Retained Earnings

Multiple Choice

Which of the following differentiates the cost of retained earnings from the cost of newly-issued common stock?

A) the cost of the pre-emptive rights held by existing shareholders
B) the greater marginal tax rate faced by the now-larger firm
C) the flotation costs incurred when issuing new securities
D) the larger dividends paid to the new common stockholders