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    Foundations of Financial Management Study Set 2
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    Exam 11: Cost of Capital
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    New Common Stock Is More Expensive Than K<sub>e</sub>
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New Common Stock Is More Expensive Than Ke

Question 80

Question 80

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.

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