Business

14 August, 11:50

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

+3

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 the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.

Search for Other Answers

You Might be Interested in

Based on what you learned, how do most people plan to use their Social Security income in the future? As supplemental retirement income As their only retirement income They plan to start collecting at 56 All of the above

Invoices should be coded for distribution in the general ledger by referring to the

A U. S. corporation has purchased currency put options to hedge a 100,000 Canadian dollar (C$) receivable. The premium is $.01 and the exercise price of the option is $.75. If the spot rate at the time of maturity is $.

The advent of television destroyed the social nature of sports and entertainment events. True or False

Assume you know that Robert has told a lie about a friend of yours, Yolanda. You tell Yolanda that she should sue for defamation, but she has no interest in that. Can you sue on behalf of Yolanda? A.

New Questions in Business

Adamson Company manufactures four lines of garden tools. As a result of an activity analysis, the accounting department has identified eight activity cost pools.

Compute the 2019 Federal income tax liability and the marginal and effective tax rates in each of the following independent cases. Click here to access the 2019 tax rate schedule. If required, round the tax liability the nearest dollar.

For a portfolio of 40 randomly selected stocks, which of the following is most likely to be true? a. The beta of the portfolio is less than the weighted average of the betas of the individual stocks. b.

What publication can give you an idea of how administrative jobs are going to change in the future? A: Office Pro B: Occupational Outlook Handbook C: From 9 to 5 D: The Executary

At a four-way stop, if two cars arrive at the intersection at the same time: A) the larger car has the right of way B) the vehicle on the right yields to the vehicle on the left C) the smaller car has the right of way D) the vehicle on the left