Since Retained Earnings Are Viewed as a Fully Subscribed Issue

question 6

Multiple Choice

Since retained earnings are viewed as a fully subscribed issue of additional common stock, the cost of retained earnings is ________.

• A) less than the cost of new common stock equity
• B) equal to the cost of new common stock equity
• C) greater than the cost of new common stock equity
• D) not related to the cost of new common stock equity

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Definitions:

Telephone Numbers

Sequences of digits assigned to telephones or other devices for the purpose of establishing telephone calls to those devices.

Concepts

Abstract ideas or general notions that exist in the mind as representations of categories or classifications of objects, events, or relations.

Permeable

describes a material or membrane that allows liquids or gases to pass through it.

Sodium Ions

Positively charged atoms of sodium that play critical roles in the body, including regulating blood pressure, fluid balance, and nerve function.