Which of the following is true?
The cost of retained earnings is always less than the cost of external equity
The cost of external equity is always less than the cost of retained earnings
The cost of retained earnings is lower than the cost of external equity in the presence of flotation costs
In the presence of flotation costs the cost of external equity is less than the retained earnings
None of the above
Cost of external equity K'ee =required rate of returnf = cost of issueHence, in presence of floatation costs, the cost of retained earnings is less than the cost of external equity.
Which of the following is not a regulatory body?
SEBI
RBI
CCI
SIDBI