All Else Constant,which One of the Following Will Increase a Firm's

Multiple Choice

All else constant,which one of the following will increase a firm's cost of equity if the firm computes that cost using the security market line approach? Assume the firm currently pays an annual dividend of $1 a share and has a beta of 1.2.

A) a reduction in the dividend amount
B) an increase in the dividend amount
C) a reduction in the market rate of return
D) a reduction in the firm's beta
E) a reduction in the risk-free rate