Which of the following will change the cost of equity?
I.Asset composition.
II.Liability composition.
III.The expected market return.
IV.The risk-free rate.

Question

Quizplus · Accepted Answer

The cost of equity can be influenced by a variety of factors including asset composition (which affects the company's risk profile), liability composition (which impacts financial leverage and thus risk), the expected market return (as it changes the relative attractiveness of investments), and the risk-free rate (which serves as a baseline for determining the cost of equity).

Which of the Following Will Change the Cost of Equity