Question
The cost of equity capital in the form of new common stock will be higher than the cost of retained earnings because of: the existence
The cost of equity capital in the form of new common stock will be higher than the cost of retained earnings because of:
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| the existence of financial leverage. |
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| the existence of taxes. |
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| the existence of flotation costs. |
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| investors' unwillingness to purchase additional shares of common stock. |
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
