a. floatation cost on new equity
b. assets gains due on new equity
c. interest expense
d. risk premium

If you have one billion dollars and...

Answer:
The answer is (a), flotation cost on unsullied equity.

Basically, a firm is looking at 3%+ of costs to do a secondary equity offering, right rotten the bat, not to mention the share price will get hit base on concern of dilution of existing shareholders. On the other hand, retained income are just lay around, ready to be invested.

Hope this help, please don't forget to vote for a best answer!

This article contents is post by this website user, InvFAQ.com doesn't promise its care.

---

Resolved Questions:
How I do the stock porfolio?
I want to make stock porfolio by myself. I similar to to play big risky game somehow, than play it risk-free. So how I suppose to make the stock porfolio?

I have need of to know in the region of bonds! investing surrounded by them? facilitate?
im soon about to turn 18 and start working and im thinking of good money to buy a bond, im thinking if i buyt a bond for 20...

Help next to Stock project?
We have to monitor stock and I hold no idea what to do. Say I invest surrounded by CISCO http://finance.yahoo.com/q?s=CSCO What is the price of the stock now and how much are the shares?...

Difference between american stock exchange & indian stock exchane?
1>how indian stock exchange effected by american stock exchange?

I am 21 years out-of-date. I enjoy $65,000 surrounded by a disc earn 4.88% interest. Can I construct a better Investment Choice?
I be thinking something like getting a manage Forex narrative but I can't find a legit company and it is too confusing for me...