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Which of the following are TRUE regarding Cost of Equity and Retained Earning? A. A company has two ways of raising common equity: a) use
Which of the following are TRUE regarding "Cost of Equity and Retained Earning"?
A. | A company has two ways of raising common equity: a) use retained earnings; b) buy back shares | |
B. | A company has two ways of raising common equity: a) use retained earnings; b) issue new stocks | |
C. | Cost of issuing new stocks is higher than the cost of retained earnings | |
D. | Cost of issuing new stocks is lower than the cost of retained earnings |
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