Examlex
Which of the following is an instrument of monetary policy?
Cost of Equity
The rate of return that a company is expected to pay out to its shareholders for their investment in the company, factoring in the risk of the investment.
Cost of Preferred
This refers to the required return on investment for preferred stock, representing the cost to a company for issuing such stock.
Pretax Cost of Debt
The interest rate a company pays on its debts, before taking taxes into account.
Cost of Equity
This refers to the rate of return that a company is expected to offer investors to compensate for the risk of investing in its equity.
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