Which of the following causes a firm's cost of capital (WACC) to differ from an investor's required
rate of return on the company's common stock?
A) the fact that the risk-free rate of interest has increased
B) The market risk premium exceeds 12.
C) the incurrence of flotation costs when new securities are issued
D) None of the above N the WACC and required return are the same.
Question 2
The external funds requirement results primarily from ________. (See Table 4.5)
A) the payment of dividends
B) the retirement of debt and purchase of new fixed assets
C) low profit margin
D) high cost of sales
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Who Gets Executed? Gender Bias in Capital Punishment
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