The Cost of Equity from Selling New Stock Is Greater

question 60

Multiple Choice

The cost of equity from selling new stock is greater than the cost of retained earnings because:

• A)selling new stock decreases the earnings per share.
• B)selling new stock increases the market price of the stock.
• C)of the flotation costs.
• D)dividends are increased.

---

Definitions:

Black Spy

Can refer to a spy who is of African descent or to a participant in espionage activities focused on African American communities or interests.

Battle of Yorktown

The decisive victory by American and French forces over the British Army in 1781, marking a turning point in the American Revolutionary War.

IV Infusion

The administration of liquid substances directly into a vein through an intravenous line for therapeutic purposes.

Pain Medication

Drugs specifically designed to alleviate pain.