Problem based on rate of cost
Question: Your firm has $100,000 available in Retrained Earnings at a cost of 12%. Additional common stock can be issued at a cost of 14%. If your company needs to raise $200,000 in equity, what rate should you assume for its cost?
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Your firm has $100,000 available in Retrained Earnings at a cost of 12%. Additional common stock can be issued at a cost of 14%.
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