The cost of retained earnings differs from the cost of new equity due to:

a. flotation costs.

b. dividends.

c. capital gains yields.

d. both a & c

e. all of the above

The cost of capital is:

		the average return on investments.
		the average rate paid for the use of investors' money.
		used primarily in projecting financial statements.
		both b & c
		all of the above