Which of the Following Is True

question 24

Multiple Choice

Which of the following is true?

• A) Companies can raise common equity only by issuing new shares of common stock.
• B) There is no opportunity cost associated with use of retained earnings as a source of common equity.
• C) Most large mature firms issue new shares of common stock on a regular basis.
• D) Companies can raise common equity by issuing new shares of common stock and through retained earnings.