Question
Explain in words why new common stock that is raised externally has a higher percentage cost than equity that is raised internally as retained earnings.
Explain in words why new common stock that is raised externally has a higher percentage cost than equity that is raised internally as retained earnings. Under which conditions is it not appropriate to use internal funding rather than external funding of projects?
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Corporate Finance Theory And Practice
Authors: Aswath Damodaran
2nd Edition
0471283320, 9780471283324
