Which one of the following factors is not considered in calculating the firm's cost of equity?

Question

Quizplus · Accepted Answer

The interest rate on corporate debt is not considered in calculating the firm's cost of equity. It is only considered in calculating the firm's cost of debt. The factors that are considered in calculating the cost of equity include the risk-free rate of return, beta, expected return on equities, and the difference between expected return on stocks and the risk-free rate of return.

Which One of the Following Factors Is Not Considered in Calculating