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The cost of capital Equity versus Debt

The cost of existing equity is the opportunity cost of retained earnings. The company can either dividend out its earnings (or part of them) or retain them. If it retains them, it has to "...
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The cost of capital Equity versus Debt

First, remember that a company is owned by its investors - it is not owned by 'itself'. It is true that a company might choose not to always pay dividends, but that is a decision which should benefit ...
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The cost of capital Equity versus Debt

It's really the "cost" of issuing new equity that is being considered. When you sell equity, you are selling a fraction of ownership of the company - meaning rights to assets in the event of ...
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