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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).

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Extensive collections of published works in electronic form are called
Solnce55 [7]
The correct <span>answer is Digital Library.

A digital library is a special collection of digital objects which can be in form of text, visual, audio or video material which has been organized, stored and retrievable in electronic formats. These materials for them to be stored in a public digital library, usually, have to be published as a requirement.</span>
4 0
3 years ago
Lauren makes $150 a day as a bank clerk. she takes two days off work without pay to fly to another city to attend the concert of
Juli2301 [7.4K]
The two days Lauren doesn't receive pay would be $150 × 2 = $300
Add on the cost of transportation & lodging: $300 + $250 = $550
Finally, add the cost of the concert ticket: $550 + $50 = $600

The opportunity cost of Lauren's decision to attend the concert is $600.
8 0
3 years ago
If a court ordered you to pay for a pizza that was mistakenly delivered to your home and which you ate, they would be issuing an
NISA [10]
That is false


The court would never do that , but before you would eat , you need to check if this belong to you or not
3 0
3 years ago
suppose you want to change your school and join another one which is very expensive.make a list of the possible risks while join
enyata [817]

Answer:

getting bullied being lonely no friends not fitting in

Explanation:

6 0
2 years ago
Floyd Industries stock has a beta of 1.20. The company just paid a dividend of $.50, and the dividends are expected to grow at 6
Elanso [62]

Answer:

a. 6.7%

b. 12.0%

Explanation:

a. DDM

Dividende Discount Method is used to calculate the price of the stock using Dividend, rate of return and growth rate.

Return on equity = [ Dividend x ( 1 + growth rate ) / Price of stock ] + Growth Rate

Return on equity = [ $0.5 x ( 1 + 6% ) / $76 ] + 6%

Return on equity = [ $0.5 x ( 1.06 ) / $76 ] + 0.06

Return on equity = 6.7%

b. SML

Security Market line method uses calculates the cost of capital using following formula

Re  =  R f  +  β   (  Rm  −  R f  )

Rf = Risk free rate

β = stock beta

Rm = Market rate

Re =Expected rate

Re = 5.9% + 1.20 ( 11% - 5.9% )

Re = 12.02%

5 0
3 years ago
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