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QUESTION
The cost of retained earnings is less that the cost of new outside equity capital.
The cost of retained earnings is less that 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.
The cost of retained earnings is less that the cost of new outside equity capital. Consequently, it istotally irrational for a firm to sell a new issue of stock and to pay dividends during the...