The cost of equity capital in the form of new common stock will be higher...

80.2K

Verified Solution

Question

Accounting

image
The cost of equity capital in the form of new common stock will be higher than the cost of retained earnings because of the existence of taxes. the existence of flotation costs. investors' unwillingness to purchase additional shares of common stock. the existence of financial leverage

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students