Which of the Following Will Increase the Cost of Equity

question 4

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 answers is correct.

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Definitions:

Critical Thinking

The process of executing an impartial assessment and review of a problem to derive a reasoned judgment.

Smaller Steps

A method where tasks or goals are divided into more manageable, bite-sized portions to facilitate easier completion or understanding.

Musical Intelligence

The capacity to think in music and rhythms, to recognize musical patterns, and to compose and perform music.

Verbal/Linguistic Intelligence

The ability to effectively use language, both written and spoken, for expression and comprehension.