Retained Earnings Costs Are Lower Than the Costs of Newly

question 28

True/False

Retained earnings costs are lower than the costs of newly issued equity since a new issue will have flotation costs.

---

Definitions:

Secondary Effect

The indirect consequences or impacts of an action or policy that may not be immediately apparent.

Cocaine

A powerful and illegal stimulant drug derived from the leaves of the coca plant, which can cause significant health and legal issues.

Illegal

Activities or actions that are forbidden by law and subject to criminal penalties or fines.

Opportunity Cost

The value of the next best alternative that is foregone when making a decision.