Which of the following causes a firm's cost of capital (WACC) to differ from an investor's required
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Question:
A) the fact that the risk-free rate of interest has increased
B) the incurrence of flotation costs when new securities are issued
C) The market risk premium exceeds 12%.
D) None of the above — the WACC and required return are the same.
Related Book For
Equity Asset Valuation
ISBN: 978-0470571439
2nd Edition
Authors: Jerald E. Pinto, Elaine Henry, Thomas R. Robinson, John D. Stowe, Abby Cohen
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