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If a firm pays an annual dividend of $2 and the firms stock has a beta of 1.5, which one of the following will increase
If a firm pays an annual dividend of $2 and the firms stock has a beta of 1.5, which one of the following will increase a firms cost of equity (assume security market line approach to calculate the cost of equity). 1. a reduction in the dividend amount. 2. an increase in the dividend amount. 3. a reduction in the market rate of return. 4. an increase in the firm's beta. 5. a reduction in the firm's beta.
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