Since retained earnings are viewed as fully subscribed


Are the following statements TRUE or FALSE...

1.) Since retained earnings are viewed as fully subscribed issue of additional common stock, the cost of retained earnings is ALWAYS EQUAL to the cost of new common stock equity.

2.) Financial considerations are always the only factors that should be considered in corporate decision making.

3.) A stock split commonly increases the number of shares outstanding and the stock's per share par value.

Solution Preview :

Prepared by a verified Expert
Basic Statistics: Since retained earnings are viewed as fully subscribed
Reference No:- TGS02852492

Now Priced at $10 (50% Discount)

Recommended (90%)

Rated (4.3/5)