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Two sources of capital of common equity are the issuance of new common stock (external) and retained earnings (internal). Compare the cost of the two

  1. Two sources of capital of common equity are the issuance of new common stock (external) and retained earnings (internal). Compare the cost of the two sources of capital and state which method you would use and why. How does the issuance of a dividend compare to using retained earnings as a source of capital. Please explain and support your answers.

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