2. A company has retained earnings of Rs. 72 lakhs and equity capital of Rs. 38 lakhs. If the
equity investors expect a rate of return of 17% and the cost of issuing fresh equity is 6%, the
cost of the retained earnings to the company is
a. 16.4%
b. 17.0%
c. 17.7%
d. 18.1%
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Answer:
The answer is optiona a please give me 10 points
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