General Studies · Cost of Retained Earnings
The implicit opportunity cost of retained earnings, serving as an internal source of long-term finance, is approximately equal to the ______.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Cost of equity (Ke)✓
- 2After-tax cost of debt (Kd)
- 3Risk-free rate of return (Rf)
- 4Zero cost (free capital)
Correct answer
Cost of equity (Ke)
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