Two sources of capital of common equity are the issuance of new common stock (external) and retained earnings (internal). Compare the cost of the two sources of capital and state which method you would use and why.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Two sources of capital of common equity are the issuance of new common stock (external) and retained earnings (internal).

Compare the cost of the two sources of capital and state which method you would use and why.

How does the issuance of a dividend compare to using retained earnings as a source of capital? 

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