Good financial reporting will lower a firm's cost of capital.

Name: Good financial reporting will lower a firm's cost of capital.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Good financial reporting enhances transparency and credibility, which can increase investor confidence and reduce the perceived risk associated with investing in the firm. As a result, investors may be willing to accept a lower rate of return, leading to a lower cost of capital for the firm.

Good Financial Reporting Will Lower a Firm's Cost of Capital