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    Foundations of Financial Management Study Set 3
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    Exam 11: Cost of Capital
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    In Computing the Cost of Common Equity, If D<sub>1</sub><sub> </Sub>goes
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In Computing the Cost of Common Equity, If D1 goes

Question 36

Question 36

Multiple Choice

In computing the cost of common equity, if D1 goes downward and Po goes up, Ke will


A) go up.
B) go down.
C) stay the same.
D) slowly increase.

Correct Answer:

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