Which of the Following Will Impact the Cost of Equity

question 26

Multiple Choice

Which of the following will impact the cost of equity component in the weighted average cost of capital?

• A) the risk-free rate
• B) beta
• C) expected return on the market
• D) all of these choices are correct.

---

Definitions:

Hopelessness

Sense that the future is bleak and there is no way to make it more positive.

Persistent Depressive Disorder

A form of depression that lasts for at least two years, characterized by a persistent depressed mood and other symptoms.

DSM-5

The Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, a comprehensive classification system for mental disorders published by the American Psychiatric Association.

Major Depression

A mood disorder marked by persistent feelings of sadness, hopelessness, and a lack of interest or pleasure in activities.