Zappin' Skeeters Corporation Needs to Know Its Cost of Retained

question 74

Multiple Choice

Zappin' Skeeters Corporation needs to know its cost of retained earnings.Based on the following information, compute the cost of retained earnings: The stock sells for $25, flotation costs are $3 and the firm is in the 35% tax bracket.

• A) 15.71%
• B) 9.11%
• C) 12.56%
• D) 10.72%

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Definitions:

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The voltage measured across the terminals of a device, which can be affected by the device's internal resistance and the current flowing through it.

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