Multiple Choice
Assume a firm has a beta of 1.2.All else held constant, the cost of equity for this firm will increase if the:
A) market risk premium decreases.
B) risk-free rate decreases.
C) market rate of return decreases.
D) beta decreases.
E) either the risk-free rate or the market rate of return decreases.
Correct Answer:
Verified
Correct Answer:
Verified
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