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Author Question: When a firm raises new equity capital by retained earnings, the firm should earn on its reinvested ... (Read 26 times)

am7272

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on: Aug 7, 2023

Question 1

To estimate the required rate of return on common equity, the DCF method can be used for both constant growth stocks and nonconstant growth stocks.

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Question 2

When a firm raises new equity capital by retained earnings, the firm should earn on its reinvested earnings at least as much as its shareholders themselves could earn on alternative investments of equivalent risk due to the existence of opportunity cost. 

◦ true
◦ false
Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by am7272 on Aug 7, 2023

feiojef

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Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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am7272

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Reply 2 on: Aug 7, 2023
Thanks for the timely response, appreciate it

isabelt_18

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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