Since the net proceeds from sale of new common stock will be less than the current market price, the cost of new issues will always be less than the cost of existing issues.

Question

Quizplus · Accepted Answer

The statement is false. The cost of new issues may be higher or lower than the cost of existing issues depending on various factors such as market conditions, demand for the stock, and the company's financial situation.

Since the Net Proceeds from Sale of New Common Stock