Type of cost which is used to raise common equity by reinvesting internal earnings is classified as?

Question

Type of cost which is used to raise common equity by reinvesting internal earnings is classified as?

cost of mortgage
cost of common equity
cost of stocks
cost of reserve assets

LohaHridoy

4 views

2025-01-04 04:42

1 Answers

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AhmedNazir · Accepted Answer · 2022-09-01T13:21:41+06:00

Answer: Option 2

Type of cost which is used to raise common equity by reinvesting internal earnings is classified as cost of common equity. The cost of equity refers to two separate concepts depending on the party involved. If you are the investor, the cost of equity is the rate of return required on an investment in equity.