The cost of retained earnings is less than the cost of new outside equity capital. Consequently, it

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The cost of retained earnings is less than the cost of new outside equity capital. Consequently, it is totally irrational for a firm to sell a new issue of stock and to pay dividends during the same year. Discuss the meaning of those statements.

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Fundamentals of Financial Management

ISBN: 978-0324664553

Concise 6th Edition

Authors: Eugene F. Brigham, Joel F. Houston

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Question Posted: Oct 05, 2011 07:45 AM

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The cost of retained earnings is less than the cost of new outside equity capital. Consequently, it

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While it is true that the cost of outside equity is high...View the full answer

Fundamentals of Financial Management

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