Since retained earnings are viewed as a fully subscribed issue of additional common stock, the cost of retained earnings is
A. less than the cost of new common stock equity.
B. equal to the cost of new common stock equity.
C. greater than the cost of new common stock equity.
D. not related to the cost of new common stock equity.
Answer:A
Since retained earnings are viewed as a fully subscribed issue of additional common stock, the cost of retained earnings is
A. less than the cost of new common stock equity. B. equal to the cost of new common stock equity. C. greater than the cost of new common stock equity. D. not related to the cost of new common stock equity.