When corporations use retained earnings to finance the R&D for a new venture, the marginal cost of financing is zero.

Name: When corporations use retained earnings to finance the R&D for a new venture, the marginal cost of financing is zero.
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Using retained earnings to finance R&D or any new venture still has a cost, known as the opportunity cost, which is the return that the company foregoes by not investing those earnings elsewhere.

When Corporations Use Retained Earnings to Finance the R&D for a New