The Cost of Retained Earnings Is

question 82

Multiple Choice

The cost of retained earnings is:

• A) the cheapest component cost
• B) zero because the firm does not have to pay interest or dividend to itself
• C) always less than the cost of new common stock
• D) typically cheaper than the cost of preferred stock

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Definitions:

Eardrum

A thin membrane that vibrates in response to sound waves, transmitting these vibrations to the middle ear.

Decibels

A unit of measurement for the intensity of sound, representing the ratio of a given sound pressure level to a reference level, oftentimes indicating the loudness of sound.

Amps

Units of electric current, short for amperes, representing the flow of charge per second.

ESPs

Extrasensory perception, involving the reception of information not gained through the recognized physical senses but sensed with the mind.