Quiz Ch 10 – T/F Cost Analysis of Funding Sources

Fundamentals of Financial Management, Concise

Brigham and Houston

09th Edition

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True or false: Capital acquired by the company through retained earnings is cost-free as it lacks dividend or interest obligations and does not necessitate flotation costs. In contrast, capital raised by issuing new stocks or bonds does come with costs.

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  • Search Terms: a. b. false true a acquired and are associated because bonds but by capital cost cost. costs dividend does earnings firm flotation funds have interest new no or payments raise raised required retaining selling stock the them, there through to with
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