How frequently do most firms update their cost of capital?

Question

Quizplus · Accepted Answer

Most firms update their cost of capital at least once a year. This is because the cost of capital may be affected by changes in the market conditions, such as interest rates or the stock market, which can impact the firm's financing costs. Additionally, changes in the firm's capital structure, such as issuing new debt or equity, may also impact the cost of capital and therefore require an update.

How Frequently Do Most Firms Update Their Cost of Capital