Business

Tianna Myers

19 March, 15:03

If the expected dividend growth rate is zero, then the cost of external equity capital raised by issuing new common stock (re) is equal to the cost of equity capital from retaining earnings (rs) divided by one minus the percentage flotation cost required to sell the new stock, (1 - F). If the expected growth rate is not zero, then the cost of external equity must be found using a different formula.

a. true

b. false

+2

Answers (1)

Know the Answer?

Not Sure About the Answer?

Find an answer to your question ✅ “If the expected dividend growth rate is zero, then the cost of external equity capital raised by issuing new common stock (re) is equal to ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.

Search for Other Answers

You Might be Interested in

Outline the five-step sequence in a decision process

Which of the following tips is a recommended way to reduce food costs? a. buying food in bulk, if it can be used before spoiling b. purchasing a preportioned, packaged foods c.

During September 2022, Carla Vista Diner's total liabilities decreased by $69000 and its stockholders' equity increased by $10000. The company's total assets must change by what amount and in what direction during that same period?

Kayla smith is engaged in research that seeks to explain inner meanings and motivations associated with customers' purchase of clothing. she records customers' words and observes their interactions as they shop.

Jaylan decided she no longer liked the car she was leasing and turned it in a year before her lease was up. what kind of fee will jaylan be required to pay as a result?

New Questions in Business

The supply curve of reserves in an economy is horizontal when: A) the federal funds rate is greater than the seasonal credit discount rate. B) the federal funds rate is less than the secondary credit discount rate.

Colton took out a 3 year loan for $2075 at a computer store to be paid back with monthly payments at a 10.7% APR. If the loan offers no payments for the first 11 months, how many payments will Colton be required to make?

An externality is a. a benefit realized by the purchaser of a good or service. b. a cost paid for by the producer of a good or service. c. a benefit or cost experienced by someone who is not a producer or consumer of a good or service. d.

When a company tries to create new uses for its product, it is undertaking a market modification program. a. True b. False?

Which of the following statements is correct? 1. Proprietary funds must prepare a Statement of Revenues, Expenses and Changes in Fund Net Position, Statement of Net Position and Statement of Cash Flows. 2.