The only difference in the cost of retained earnings (K_e) and the cost of new common stock (K_n₎is the flotation cost on new common stock.

Name: The only difference in the cost of retained earnings (K e ) and the cost of new common stock (K n ) is the flotation cost on new common stock.
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Question

Quizplus · Accepted Answer

The statement is true, as the only difference between the cost of retained earnings and the cost of new common stock is the flotation cost associated with issuing new stock.

The Only Difference in the Cost of Retained Earnings (Ke)

The Only Difference in the Cost of Retained Earnings (K_e)