ON THE COST OF NEW ISSUES OF COMMON STOCK: AN AMENDMENT TO THE CONSTANT GROWTH MODEL

Expansion decisions by corporate managements are importantly influenced by their perceptions of the firm's cost of capital and especially the cost of common equity. Their decision making is then influenced by the common perception that new issues of common stock are more costly than retained earnings because of the flotation costs inherent in new issues. Thus a rate of expansion that requires new issues is downgraded in decision making. In this paper the authors show that in actuality new issues of common equity may be less costly than retained earnings. Thus different decision-making implications are clearly involved.     

外商直接投资、技术外溢与我国经济增长

我国自改革开放以来,外商直接投资(FDI)发展迅速。2002年我国首次超过美国成为全球引进外资最多的国家,2004年吸引外资又创新高,首次突破600亿美元大关,仍居世界第一。外商直接投资作为国际技术外溢的主要渠道之一,是实现我国技术进步的重要途径。为此,我们应继续坚持对外开放政策,采取各项措施充分发挥我国FDI的技术外溢效应,以促进我国国民经济稳定、持续地发展。