Which One of the Following Will Increase the Cost of Equity

question 37

Multiple Choice

Which one of the following will increase the cost of equity, all else held constant?

• A)Increase in the dividend growth rate
• B)Decrease in beta
• C)Decrease in future dividends
• D)Increase in stock price
• E)Decrease in market risk premium

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Definitions:

Role Pressure

The stress or tension experienced by an individual due to the expectations associated with a particular social role or position.

Social Interaction

is the process by which individuals act and react in relation to others, shaping each other's behaviors and attitudes.

Emotion Management

Involves people obeying “feeling rules” and responding appropriately to the situations in which they find themselves.

Role Conflict

A situation where an individual faces incompatible demands or expectations from different social roles they occupy.