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Funds acquired by the firm through retaining earnings have no cost because there are no dividend or interest payments associated with them, and no flotation costs are required to raise them, but capital
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Funds acquired by the firm through retaining earnings have no cost because there are no dividend or interest payments associated with them, and no flotation costs are required to raise them, but capital raised by selling new stock or bonds does have a cost.

True / False.

User Razia
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1 Answer

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Answer:

The correct answer is false.

Step-by-step explanation:

This statement is false because all funds acquired through earnings have an intrinsic cost that must be determined at the time of withholding them, which must be taken into account during the sale process of any title that is part of the estate. business.

User Lccarrasco
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