Retained earnings
A. Are cheaper than the cost of new common stock
B. Have no cost
C. Are a firm's cheapest source of funds
D. Have a cost that equals the weighted-average cost of capital
E. Increase financial leverage
Answer: A. Are cheaper than the cost of new common stock
You might also like to view...
Which one of the following is NOT a characteristic of public goods?
A) They are indivisible. B) It is difficult to charge people on the basis of how much they use. C) Public goods can be used by increasing numbers of people at no additional cost. D) Public goods are subject to the principle of rival consumption.
Sugar is an input used to produce cereal. Suppose that the price of sugar rises. As a result
A) the supply curve for sugar will shift to the right.
B) the supply curve for sugar will shift to the left.
C) the supply curve for cereal will shift to the right.
D) the supply curve for cereal will shift to the left.