1. Which financing will result in an issuer cost being less that the return being earned by the investor?
a. Debt
b. Common stock
c. Retained earnings
d. Preferred stock
2. The formula Do(1+g)/{P(1-f)} + g can be used to estimate the required return to the issuing company on which security?
a. Preferred stock
b. common stock
c. Retained earnings
d. All the above