First possible answer to the sentence above is retained earnings or issuing new common stock. Which is it?

5. Cost of new common stock a Aa A firm needs to take flotation costs into account when it is raising capital from g new common stock True or False: The following statement accurately describes how firms make decisions related to issuing new common stock If a firm needs additional capital from equity sources once its retained eamings breakpoint is reached, it will have to raise the capital by issuing new common stock. O True: Firms will raise all the equity they can from retained eamings before issuing new common stock, because capital from retained earnings is cheaper than capital raised from issuing new common stock. O False: Firms raise capital from retained eamings only when they cannot issue new common stock due to market conditions outside of their control. Alpha Moose Transporters has a current stock price of $33.35 per share, and is expected to pay a per-share dividend of $2.45 at the end of next year. The company's eamings' and dividends' growth rate are expected to grow at the constant rate of 9.40% into the foreseeable future. If Alpha Moose expects to incur flotation costs of 5.00% of the value of its newly-raised equity funds, then the flotation-adjusted (net) cost of its new common stock (rounded to two decimal places) should be 14.56% 13.70% 17.13% 16.75% White Lion Homebuilders Co structure consists of 35% d arnings for this year is expected to be $745,000. Its target capital , and 60% equity. Determine white Lion Homebuilders's retained eamings breakpoint: O $1,427,917 O $1,117,500 O $1,303,750 $1,241,667