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Define the cost of equity capital. Is it an accounting cost? If not, what is it? Is it a low cost source of capital or

  • Define the cost of equity capital. Is it an accounting cost? If not, what is it? Is it a low cost source of capital or a high cost source compared to other possible sources of capital? Explain. What would happen to a firm if it failed to deliver to its common stockholders the cost of equity capital? This question refers only to common equity.

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