FIN331+++original

FIN331

1.         Which one (s) is (are) an external financing and has the flotation cost?

a.       Retained earnings

b.      Bonds

c.       Preferred stock

d.      a & b

e.       b & c  -answer

Retained earnings are internal source of fund. Issuing bonds, preferred stocks, and common stocks are external source of fund, which have the floation cost.???

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