A firm estimates that its proposed capital budget will force it to issue new common stock, which has a greater cost than the cost of retained earnings. The firm, however, would like to avoid issuing costly new common stock. Which of the following steps would mitigate the firmâs need to raise new common stock? a. Increasing the companyâs dividend payout ratio for the upcoming year. b. Reducing the companyâs debt ratio for the upcoming year. c. Increasing the companyâs proposed capital budget. d. All of the statements above are correct. e. None of the statements above is correct.
+4
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A firm estimates that its proposed capital budget will force it to issue new common stock, which has a greater cost than the cost of ...” 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.
Home » Business » A firm estimates that its proposed capital budget will force it to issue new common stock, which has a greater cost than the cost of retained earnings. The firm, however, would like to avoid issuing costly new common stock.