1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
sattari [20]
3 years ago
11

Funds acquired by the firm through retaining earnings have no cost because there are no dividend or interest payments associated

with them, and no flotation costs are required to raise them, but capital raised by selling new stock or bonds does have a cost. True False
Business
2 answers:
kow [346]3 years ago
8 0

Answer:

False

Explanation:

Retained earnings have no flotation costs, but have opportunity costs. For example, if companies distribute the earnings to shareholders, shareholders can invest the funds in alternative sources for returns.

fenix001 [56]3 years ago
4 0

Answer:

False

Explanation:

Retained earnings as well as equity capital (raised through issuing stocks) have the same cost, and that is the required rate of return. Retained earnings must be treated as reinvested equity, since the alternative to retained earnings would be to distribute dividends to the stockholders.

Bonds usually have a lower cost and it is determined by the coupon rate and the corporate tax rate (interests paid lower taxes).

You might be interested in
Sally is in the new marketing department of a midsized lawn and garden company. She is working on the first marketing plan the f
Alisiya [41]

Answer:

D)

Explanation:

D) identify and evaluate opportunities by conducting segmentation, targeting, and opositioning analysis.

5 0
2 years ago
Briefly discuss Sherif’s (1966) classic study of boys at summer camp in terms of findings and implications for understanding com
Serhud [2]

Sherif’s (1966) classic Robbers Cave study of boys at summer camp finds the relationship between the two groups of boys immediately deteriorated when the event began.

In the 1940s and 1950s, social psychologist Muzafer Sherif and his associates conducted a number of investigations, including the Robbers Cave experiment. Sherif investigated the interactions between male groups at summer camps and a competitor group with the hypothesis that "when two groups have competing purposes... their members would become antagonistic to one other even when the groups are constituted of normal well-adjusted individuals at a summer camp " The Robbers Cave study found the incident swiftly escalated once the parties started throwing jabs. The Sherif discovered that the summer camps' surveys, in which they were asked to score their own team and the opposing team on good and bad attributes, contained questions about group animosity.

Learn more about Sherif here:

brainly.com/question/14407858

#SPJ9

5 0
9 months ago
Patrick has chosen to double major in finance and microbiology and studies 14 hours a day as a result. To make it through his st
Varvara68 [4.7K]

Answer:

D) The extra energy benefits Patrick gets from another can are no longer worth the cost. MB/MC (S)

Explanation:

The optimal quantity for Patrick to consume is 5 cans of GreenCow.

This is the quantity where MARGINAL BENEFIT EQUALS MARGINAL COST. For all quantities up to the 5th, the marginal benefit is higher than the marginal cost. This means that Patrick's net benefit is increasing, and consuming all units up to this point make him better off.

If Patrick were to consume any more than 5 cans of GreenCow, the cost of each additional can would be higher than the additional benefit (because the marginal cost curve is higher than the marginal benefit curve). Consuming any cans beyond the 5th, therefore, makes him worse off.

4 0
3 years ago
What components of GDP (if any) would each of the following transactions affect? Explain. Remember Y=C(Y-T)+I(R)+G+X-M a. A fami
horsena [70]

Answer:

A. The household purchase of a new refrigerator will directly lead to an increase in the consumption component of the Gross Domestic Product (GDP). Therefore, the GDP will increase by the amount of refrigerator purchased

4 0
3 years ago
The number of births in a population in a certain amount of time is the
amid [387]
The number of births in a population in a certain amount of time is the birth rate
8 0
3 years ago
Read 2 more answers
Other questions:
  • On January 1, 2019, Lynch Company acquired 13% bonds with a face value of $50,000. The bonds pay interest on June 30 and Decembe
    14·1 answer
  • Who pleads with big business to hire again in great depression?
    5·2 answers
  • If the halo effect is apparent in a performance review, it indicates:
    7·1 answer
  • _____ is work done to keep equipment in good working order. Defragmentation Preventive maintenance Virus protection A maintenanc
    11·1 answer
  • On December 31, 2021, when its Allowance for Doubtful Accounts had a debit balance of $1,534, Indigo Corporation estimates that
    7·1 answer
  • Which of the following refers to a set of rights to control a tangible or intangible thing?
    6·1 answer
  • Account balance of 1723.57 the interest rate of the account is 3.4% compounded daily. If the account was opened 9 years ago, wha
    13·1 answer
  • Ace Leasing acquires equipment and leases it to customers under long-term sales-type leases. Ace earns interest under these arra
    11·1 answer
  • Tradable pollution permits are a:________.
    7·1 answer
  • Which describes a small group of firms that control a particular market for goods,
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!