Multiple Choice
Suppose a new project was going to be financed partially with retained earnings.What flotation costs should you use for retained earnings?
A) Use the same flotation cost that would be used to issue new common stock
B) Use an average of the flotation costs for debt, preferred and common stock
C) Use the industry average flotation cost for common stock
D) Zero
Correct Answer:
Verified
Correct Answer:
Verified
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