In computing the cost of retained earnings, the net proceeds ...

[imanialler]

In computing the cost of retained earnings, the net proceeds represents the amount of money retained net of any underpricing and/or flotation costs.
 
  Indicate whether the statement is true or false

Question 2

A firm can retain more of its earnings if it can convince its stockholders that it will earn at least their required return on the reinvested funds.
 
  Indicate whether the statement is true or false

[Chelseyj.hasty]

Answer to Question 1

FALSE

Answer to Question 2

TRUE

[imanialler]

Thanks for the timely response, appreciate it

[mcabuhat]

Excellent