The cost of new common stock financing is higher than the cost of retained earnings due to
A. flotation costs and underpricing.
B. flotation costs and overpricing.
C. flotation costs and commission costs.
D. commission costs and overpricing.
Answer:A
The cost of new common stock financing is higher than the cost of retained earnings due to
A. flotation costs and underpricing. B. flotation costs and overpricing. C. flotation costs and commission costs. D. commission costs and overpricing.