Which of the following statements about a firm with declining growth is true?
A) Its cost of capital must equal its earnings-price yield.
B) Its cost of capital will be greater than its earnings-price yield.
C) Its cost of capital will be less than its earnings-price yield.
D) None of the above is true. There is no firm relationship between a firm's cost of capital and its earnings-price yield.
Correct Answer:
Verified
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