The cost of retained earnings is less than the cost of new common stock because

A) flotation costs are incurred when new stock is issued.
B) accounting rules allow a deduction when using retained earnings.
C) dividends are not tax deductible.
D) marginal tax brackets increase.


A

Business

You might also like to view...

How are purchase discounts and purchase returns recorded by a company using the periodic inventory system?

a. As a direct reduction to the Purchases account b. In contra accounts to the Purchases account c. As operating expenses d. As miscellaneous expenses

Business

What affects approximately 13 percent of U.S. workers and costs an estimated $23.8 billion annually?

a. poor customer-employee relationships b. pressure to lie c. employee theft d. abusive supervision

Business

Explain the distinction between outsourcing and offshoring

What will be an ideal response?

Business

Organizations using ________ corporate social responsibility meet reasonable societal expectations and exceed government laws and regulations to be just and fair to stakeholders.

A. legal B. ethical C. benevolent D. social

Business