The cost of retained earnings is
A. zero.
B. equal to the cost of a new issue of common stock.
C. equal to the cost of common stock equity.
D. irrelevant to the investment/financing decision.
Answer:C
The cost of retained earnings is
A. zero. B. equal to the cost of a new issue of common stock. C. equal to the cost of common stock equity. D. irrelevant to the investment/financing decision.