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Assume a firm has a beta of 1.2. All else held constant, the cost of equity for this firm will increase if the: Multiple Choice

Assume a firm has a beta of 1.2. All else held constant, the cost of equity for this firm will increase if the:

Multiple Choice

  • dividend growth rate increases.

  • market rate of return decreases.

  • market risk premium decreases.

  • risk-free rate increases.

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