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How would the following event/factor affect the companys cost of capital? Assuming there are no other contemporaneous events/changes. - The companys CEO resigned due to

How would the following event/factor affect the company’s cost of capital? Assuming there are no other contemporaneous events/changes. - The company’s CEO resigned due to health concerns. Answer Choices: 

A) there should be no impact on cost of capital, 

B) Cost of Capital is expected to decrease, 

C) Cost of Capital is expected to increase


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SOLUTION The resignation of the companys CEO due to health concerns can have a significant impact on the companys cost of capital The cost of capital is the minimum rate of return that the company mus... blur-text-image

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