Common stock is more expensive than existing common stock

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Reference no: EM131354293

1. New common stock is more expensive than existing common stock:

a) to compensate for risk

b) to compensate for more dividends

c) to compensate for expansionary problems

d) to cover distribution costs

2. Marginal cost of capital:

a) to compensate for risk

b) to compensate for more dividends

c) to compensate for expansionary problems

d) to cover distribution costs

Reference no: EM131354293

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