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Author Question: The cost of new common stock is normally greater than any other long-term financing cost. ... (Read 430 times)

cdr_15

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on: Jul 11, 2018
The cost of new common stock is normally greater than any other long-term financing cost.
 
  Indicate whether the statement is true or false

Question 2

When the constant-growth valuation model is used to find the cost of common stock equity capital, it can easily be adjusted for flotation costs to find the cost of new common stock; the capital asset pricing model (CAPM) does not provide a simple
 
  adjustment mechanism.
  Indicate whether the statement is true or false


Jevvish

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Reply #1 on: Jul 11, 2018
Answer to Question 1

TRUE

Answer to Question 2

TRUE


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