New capital and its dividends vs retained earnings

Reference no: EM13825928

Problem:

"Unlike new capital, which needs a stream of new dividends to service it, retained earnings have zero cost."

Additional Information:

This question is basically belongs to Finance as well as it discuses about the statement and whether or not it is agreeable. The statement is about new capital and its dividend as well as retained earnings.

Reference no: EM13825928

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