Question: Explain what the first two sentences in this excerpt mean: What is the connection between the relative prices of these two types of firms and

Explain what the first two sentences in this excerpt mean: What is the connection between the relative prices of these two types of firms and their cost of raising capital?
A.
Growth stocks had a higher price-to-earnings ratio than value stocks. The cost of raising new capital falls with an increase in the stock price.
B.
Growth stocks had a higher dividend payout ratio than value stocks. The cost of raising new capital falls with an increase in the stock price.
C.
Growth stocks had a higher book value than market value. Increasing of book value, rather than market make less difficult to attract new capital.
D.
There is no connection between the relative prices of these two types of firms and their cost of raising capital.

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