Multiple Choice
Retained earnings has a cost associated with it because
A) new funds must be raised.
B) there is an opportunity cost associated with stockholder funds.
C) Ke > g.
D) flotation costs increase the cost of funding.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q88: Ten years ago, Stigler Company issued $100
Q89: In determining the cost of retained earnings<br>A)
Q90: The coupon rate on an issue of
Q91: The cost of debt is equal to
Q92: Using the constant growth model, a firm's
Q94: In determining the cost of preferred stock,
Q95: Debreu Beverages has an optimal capital structure
Q96: Earnings before interest, taxes, depreciation and amortization
Q97: Companies prefer to maintain some financing flexibility
Q98: The after-tax cost of preferred stock to