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Business, 12.10.2019 01:30 santiagoagilg

The cost of retained earnings and the cost of new common stock are calculated in the same manner, except that the cost of the new shares is based on the value of the firm’s share price net of its flotation cost, while the cost of a firm’s retained earnings is based solely on the share’s expected future cash flows, its current market price, and the expected rate of growth of the firm’s earnings and the share’s dividends. true / false.

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