135. CSO: 2B4b LOS: 2B4b In calculating the component costs of long-term funds, the appropriate cost of retained earnings, ignoring flotation costs, is equal to a. the cost of common stock. b. the same as the cost of preferred stock. c. the weighted average cost of capital for the firm. d. zero, or no cost.

2B4B IN CALCULATING THE COMPONENT COSTS OF LONG-TERM FUNDS, THE APPRO...

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135.

CSO: 2B4b

LOS: 2B4b

In calculating the component costs of long-term funds, the appropriate cost of retained

earnings, ignoring flotation costs, is equal to

the cost of common stock.

the same as the cost of preferred stock.

the weighted average cost of capital for the firm.

zero, or no cost.