Which one of the following would tend to have the greatest effect on the cost of equity?
A) A 10% one-time increase in a firm's dividend.
B) A 10% increase in the growth rate of a firm's dividends.
C) The elimination of one dividend payment five years from now.
D) A 10% decline in the market value of a firm's common stock.
E) A 10% increase in the market value of a firm's common stock.
Correct Answer:
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