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A Firm's Overall Cost of Equity Is

Question 10

Multiple Choice

A firm's overall cost of equity is:


A) is generally less that the firm's WACC given a leveraged firm.
B) unaffected by changes in the market risk premium.
C) highly dependent upon the growth rate and risk level of the firm.
D) generally less than the firm's aftertax cost of debt.
E) inversely related to changes in the firm's tax rate.

Correct Answer:

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