Which of the Following Will Increase the Cost of Equity

question 11

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 the options are correct.

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Definitions:

Interference With Economic Relations

An intentional and wrongful act by one party that causes economic harm to another by disrupting their business relationships or contracts.

Breach Of Contract

A breach in not adhering to any part of a contract, whether it is in writing or oral form, without a sanctioned legal excuse.

Privacy Acts

Laws designed to protect the personal information of individuals from unauthorized access, use, or disclosure.

Damages

Compensation claimed by or awarded to a person as redress for a loss or injury.