elizaannettem2495 elizaannettem2495
  • 20-07-2020
  • Business
contestada

The cost of raising capital through retained earnings is__________ the cost of raising capital through issuing new common stock.

Respuesta :

ewomazinoade ewomazinoade
  • 23-07-2020

Answer:

less

Explanation:

flotation costs are the cost incurred when issuing new common stock.

there are no flotation cost when using retained earnings to raise new capital.

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