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

Name: higher the firm's flotation cost for new common equity, the more likely the firm is to use preferred stock, which has no flotation cost, and retained earnings, whose cost is the average return on the assets that are acquired.
Brand: Quizplus
Rating: 4.7 (57 reviews)

Question

Quizplus · Accepted Answer

The Answer is False

Higher the Firm's Flotation Cost for New Common Equity, the More