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Cost of equity which is raised by reinvesting earnings internally must...

This question belongs to Commerce Financial Management
Financial Management
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Cost of equity which is raised by reinvesting earnings internally must be higher than the

Answer & Solution
Correct Answer: Option B
Cost of equity which is raised by reinvesting earnings internally must be higher than the cost of new common equity. The cost of equity is the return a company requires to decide if an investment meets capital return requirements.
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