Question: Please help with the following questions. Please answer the questions separately and each question should have 1 reference. q1. The cost of capital formula is
Please help with the following questions. Please answer the questions separately and each question should have 1 reference.
q1. The cost of capital formula is theoretically sound but how easy / difficult is to implement in practice?
q2. How does a company's use of financial leverage impact its risk premium (cost of equity). What does Hamada equation describe?
q3. How would you respond to a firm's decision to cut dividends?
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