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Retained earnings : when measuring this cost, the firm does not concern itself with the tax bracket or brokerage fees of owners. It expects to
Retained earnings: when measuring this cost, the firm does not concern itself with the tax bracket or brokerage fees of owners. It expects to have available $100,000 of retained earnings in the coming year; once these retained earnings are exhausted, the firm will use new common stock as the form of common stock equity financing.
Q1- Calculate the specific cost of each source of financing.
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