When calculating the cost of capital, what the cost assigned to retained earnings should be? (Select from the below mentioned)

A) Zero.

B) Lower than the cost of external common equity.

C) Equal to the cost of external common equity.

D) Higher than the cost of external common equity.

Question added by Shameer Nazir Madari , Assistant Finance Manager , METAL AND RECYCLING COMPANY K.S.C. (PUBLIC)
Date Posted: 2016/07/25

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by Thubelihle Maphosa , Assistant Accountant , Q Business Solutions

B) Lowe than the cost of external common equity

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