Multiple Choice
The cost of equity
1) is less than the cost of debt
2) is greater than the cost of debt
3) depends on the riskiness of the firm
4) depends on the firm's current ratio
A) 1 and 3
B) 1 and 4
C) 2 and 3
D) 2 and 4
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q1: The effective cost of debt depends on<br>1)
Q2: A firm will prefer to issue preferred
Q3: In the capital assets pricing model, the
Q4: The cost of retained earnings tends to
Q5: The optimal capital structure is the firm's
Q7: If the dividend growth model is used,
Q8: The weighted cost of capital includes the
Q9: The marginal cost of capital<br>A) is the
Q10: Preferred stock increases common stockholders' return<br>A) more
Q11: The cost of preferred stock is less