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  3. Study Set
    Foundations of Financial Management
  4. Exam
    Exam 11: Cost of Capital
  5. Question
    The Only Difference in the Cost of Retained Earnings (K<sub>e</sub>)
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The Only Difference in the Cost of Retained Earnings (Ke)

Question 46

Question 46

True/False

The only difference in the cost of retained earnings (Ke) and the cost of new common stock (Kn) is the flotation cost on new common stock.

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