The cost of equity raised by retaining earnings can be less than, equal to, or greater than the cost of external equity raised by selling new issues of common stock, depending on tax rates, flotation costs, the attitude of investors, and other factors.
a.True
b.False

Question

19-02-2020
Business

contestada

The cost of equity raised by retaining earnings can be less than, equal to, or greater than the cost of external equity raised by selling new issues of common stock, depending on tax rates, flotation costs, the attitude of investors, and other factors.
a.True
b.False

Respuesta :

Otras preguntas

Sun Mi is designing a questionnaire on loneliness. She is concerned that some features of loneliness are similar to depression and to low self-esteem. Which typ

Changes in weather patterns are increasing administrative costs for insurance companies. These added costs often exceed the amount of the premiums coming in and

A conductor carries a current that is decreasing exponentially with time. The current is modeled as I = I0e−t/τ,where I0= 4.00 A is the current at time t = 0.00

a statue is 100 feet tall. A scale model of the statue is 6 inches tall. if the base of the statue is 5 feet wide, what is the width of the model? 3 Inches 5 i

can someone help.? thanks :)

The financial statements of the Imagine Company report net sales of $1,000,000 and accounts receivable of $700,000 and $300,000 at the beginning of the year and

By what process was George Washington elected president???

Trevorrow Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During

Consider a constant density gas flowing steadily over an airfoil. Far upstream the velocity is V0. Halfway along the top surface, the velocity has increased to

Suppose the government has imposed a price ceiling on sliced sandwich bread. Which of the following events could transform the price ceiling from one that is bi

osondumartins osondumartins · Answer 1 · 2020-02-19T05:17:31+01:00

Answer:FALSE

Explanation: Cost of equity is the return that a business organisation have to decide if the it will embark on a business based on the level of return on it capital investment.

The cost of equity refers two facets which are the INVESTOR AND THE BUSINESS.

For an investor the cost of equity is the rate of return required on an investment in equity.

For a Business entity, the cost of equity determines the required rate of return on a particular project or investment.

The cost of retained earnings shows the return that an investor expect to earn on his or her equity investment in the company. It can be derived using the CAPITAL ASSETS PRICING MODEL.

The cost of equity raised by retaining earnings can be less than, equal to, or greater than the cost of external equity raised by selling new issues of common stock, depending on tax rates, flotation costs, the attitude of investors, and other factors. a.True b.False

Respuesta :

Otras preguntas

The cost of equity raised by retaining earnings can be less than, equal to, or greater than the cost of external equity raised by selling new issues of common stock, depending on tax rates, flotation costs, the attitude of investors, and other factors.
a.True
b.False