A COMMENT ON THE COST OF NEW ISSUES OF COMMON STOCK
指出Carlson和Dietz关于新股发行成本低于留存收益成本的观点源于解释错误，并论证了恒定增长模型在市场价格与账面价值关系上的有效性。
ABSTRACT According to the constant growth model and perceived finance theory, the cost of new external equity exceeds the cost of retained earnings due to flotation costs and underpricing. Carlson and Dietz [1] have recently argued that the constant growth model is operationally inadequate whenever the net proceeds from the issuance of a new share differ from book value. Specifically, they contend that the cost of new external equity is less than the cost of retained earnings whenever the net proceeds from a new share exceed book value. We show that these conclusions stem from an error in interpretation and therefore that the constant growth model is valid regardless of the relationship between market prices and book value.