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    Principles of Finance
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    Exam 12: The Cost of Capital
  5. Question
    The Higher the Firm's Flotation Cost for New Common Equity,the
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The Higher the Firm's Flotation Cost for New Common Equity,the

Question 104

Question 104

True/False

The higher the firm's flotation cost for new common equity,the more likely the firm is to use preferred stock that has no flotation cost and retained earnings whose cost is the average return on assets.

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