The cost of equity raised by retaining earnings can be less than, equal to, or greater than the cost of equity raised by selling new issues of ordinary shares, depending on tax rates, flotation costs, the attitude of investors, and other factors.

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The Answer of The cost of equity raised by retaining earnings can be less than, equal to, or greater than the cost of equity raised by selling new issues of ordinary shares, depending on tax rates, flotation costs, the attitude of investors, and other factors.

The Cost of Equity Raised by Retaining Earnings Can Be