The Cost of Equity Will Generally Increase for Risky Firms

question 85

True/False

The cost of equity will generally increase for risky firms when the risk-free rate of return increases.

---

Definitions:

Immune System

A complex network of cells, tissues, and organs that work together to defend the body against attacks by foreign pathogens.

Workload

The amount of work assigned to or required or expected from a person in a given time period.

Unrewarded

The state of not receiving a reward or acknowledgment for an action or behavior, often used in the context of learning and behavior modification.