flotation costs increase the cost of newly issued stock compared to the cost of the firm’s existing, or already outstanding, common stock or retained earnings.

Respuesta :

Any time dividends are paid to stock holders, it might have an effect on a company's retained earnings.

Are common shares and retained earnings the same thing?

Retained profits are a portion of the firm's net earnings that are left over after paying dividends to shareholders, as opposed to common stock, which represents the ownership of the company by equity shareholders.

On a balance sheet, what is common stock?

Common stocks are listed on the balance sheet as the total number of a company's shares. The company's owners are its common stockholders, who also have voting rights and are entitled to dividends. They could be outside investors, insiders, or firm promoters.

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