Question: Retained earnings has a cost associated with it because: a. new funds must be raised. b. There is an opportunity cost associated with stockholder funds.
Retained earnings has a cost associated with it because: a. new funds must be raised. b. There is an opportunity cost associated with stockholder funds. c. Ke > g d. flotation costs increase the cost of funding.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
