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New common stock financing is more expensive than retained earnings to compensate for expansionary problems. to compensate for more dividends. to compensate for additional risk.

New common stock financing is more expensive than retained earnings

to compensate for expansionary problems.

to compensate for more dividends.

to compensate for additional risk.

none of the answers provided is correct, retained earnings is not a source of capital.

to compensate for distribution or flotation costs.

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