The Only Difference in the Cost of Retained Earnings (K_e)

question 46

True/False

The only difference in the cost of retained earnings (K_e) and the cost of new common stock (K_n) is the flotation cost on new common stock.

---

Definitions:

Horizontal Ruler

A visual tool in software used to measure and align objects or text horizontally within a document.

Insertion Point

The blinking cursor in a text field or document that indicates where the next typed character will appear.

Tab Key

The Tab key is a keyboard key used to create indentations in text or move the cursor to the next tab stop in a form or table.

Nonbreaking Space

A character used in electronic documents to prevent an automatic line break at its position.