Which of the Following Will Increase the Cost of Equity

question 85

Multiple Choice

Which of the following will increase the cost of equity?

• A) The firm's share price falls 10 percent.
• B) The firm is expected to reduce its dividend.
• C) The firm's corporate tax rate increases.
• D) None of these choices are correct.

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Definitions:

Mediation

A method of dispute resolution where a neutral third party, the mediator, helps the disputing parties to reach a mutually acceptable agreement.

Adversarial

Characterized by conflict or opposition, especially in a legal context where two or more parties argue against each other.

Alternative Dispute Resolution

A range of dispute resolution methods outside of the courtroom, including mediation and arbitration, intended to result in a consensus between the parties.

Litigating

The process of taking legal action or settling disputes in court.