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Assume a firm uses the CAPM to determine its cost of equity. If the firm currently pays an annual dividend of $ 3 . 3
Assume a firm uses the CAPM to determine its cost of equity. If the firm currently pays an annual dividend of $ per share and has a beta of all else constant, which of the following actions will increase the firm's cost of equity?
A
A decrease in the firm's beta
B
A decrease in the dividend amount
C
An increase in the dividend amount
D
A decrease in the market rate of return
E
A decrease in the riskfree rate
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