Quiz Ch 10 – T/F Flotation Costs and Capital Source Selection

Fundamentals of Financial Management, Concise

Brigham and Houston

09th Edition

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True or false: Increased flotation costs for new common equity make it more probable for firms to opt for preferred stock, which incurs no flotation cost, and retained earnings, with a cost equivalent to the average return on acquired assets.

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  • Search Terms: a. b. false true acquired. and are assets average common cost cost, earnings, equity, firm firm's flotation for has higher is likely more new no on preferred retained return stock, that the to use which whose
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