MCQOPTIONS
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| 1. |
The cost of equity capital is all of the following EXCEPT: |
| A. | the minimum rate that a firm should earn on the equity-financed part of an investment. |
| B. | a return on the equity-financed portion of an investment that, at worst, leaves the market price of the stock unchanged. |
| C. | by far the most difficult component cost to estimate. |
| D. | generally lower than the before-tax cost of debt. |
| Answer» E. | |