The cost of retained earnings to the firm is the same as the cost of an equivalent fully subscribed issue of additional common stock.

Name: The cost of retained earnings to the firm is the same as the cost of an equivalent fully subscribed issue of additional common stock.
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The cost of retained earnings is the same as the cost of an equivalent fully subscribed issue of additional common stock because both sources of financing have the same impact on the firm's capital structure and cost of capital.

The Cost of Retained Earnings to the Firm Is the Same