Which of the following differentiates the cost of retained earnings from the cost of newly-issued
common stock?
A) the cost of the pre-emptive rights held by existing shareholders
B) the greater marginal tax rate faced by the now-larger firm
C) the larger dividends paid to the new common stockholders
D) the flotation costs incurred when issuing new securities
D
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What is the most common failure of a company's marketing communication effort?
a. Not enough funds are allocated toward IMC. b. There is a failure to effectively tie personal selling in with the other elements of the promo mix. c. Consumers recognize discordance within the promo mix. d. There is a failure to blend long-term plans with short-term goals.
A(n) ________ is the most common way that firms repurchase shares
A) targeted repurchase B) Dutch auction share repurchase C) tender offer D) open market share repurchase