Which of the following will directly impact the cost of equity?
A) Expected growth rate in sales
B) Expected future tax rates
C) Stock price
D) Profit margins

Question

Quizplus · Accepted Answer

The stock price is one of the components used in calculating the cost of equity. As stock price increases, the cost of equity decreases, and vice versa. The expected growth rate in sales, expected future tax rates, and profit margins do not directly impact the cost of equity.

Which of the Following Will Directly Impact the Cost of Equity