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Question 73 - CTFA discussion

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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
Answers
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
Answers
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
Answers
C.
By far the most difficult component cost to estimate
D.
Generally lower than the before-tax cost of debt
Answers
D.
Generally lower than the before-tax cost of debt
Suggested answer: D
asked 16/09/2024
OLUWAGBENRO AFUWAPE
39 questions
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