Which of the following causes a firm's cost of capital (WACC) to differ from an investor's required rate of return on the company's common stock The fact that the risk free rate of interest has increased The incurrence of flotation costs when new securities are issued The market risk premium exceeds 12 None of the answers are correctthe WACC and required return are the same

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Which of the following causes a firm's cost of capital (WACC) to differ from an investor's required rate of return on the company's common stock?

		The fact that the risk-free rate of interest has increased.
		The incurrence of flotation costs when new securities are issued.
		The market risk premium exceeds 12%.
		None of the answers are correctthe WACC and required return are the same.

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