Why should I choose AnalystNotes?

AnalystNotes specializes in helping candidates pass. Period.

Basic Question 13 of 15

Financing comes from three sources, retained earnings, debt and new equity. Retained earnings have the lowest cost because of:

A. static trade-off between debt and equity
B. agency costs of equity
C. asymmetry information theory

User Contributed Comments 0

You need to log in first to add your comment.
I used your notes and passed ... highly recommended!
Lauren

Lauren

Learning Outcome Statements

describe optimal and target capital structures

CFA® 2024 Level I Curriculum, Volume 2, Module 6.