If a Company's Cost of Capital Is Less Than the Required

question 22

Multiple Choice

If a company's cost of capital is less than the required return on equity, then the firm:

• A) is financed with more than 50% debt.
• B) is perceived to be safe.
• C) has debt in its capital structure.
• D)is all equity financed.

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Definitions:

Equitably

In a manner that is fair, just, and impartial, ensuring equal treatment or opportunities for all.

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