FIN MCQ FIN3403 These days the stock market is worried that Federal Reserve is expected to take actions that cause the risk-free rate to increase. If all else the same,including the level of market required return, we would expect a firm's cost of equity to _______.

These days the stock market is worried that Federal Reserve is expected to take actions that cause the risk-free rate to increase. If all else the same,including the level of market required return, we would expect a firm's cost of equity to _______.

FIN3403

These days the stock market is worried that Federal Reserve is expected to take actions that cause the risk-free rate to increase. If all else the same,including the level of market required return, we would expect a firm's cost of equity to _______.

Answer: either increase or decrease if we are using the SML, but we can't determine which without information about the firm's beta.

Learn More :

If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.

FIN MCQ

These days the stock market is worried that Federal Reserve is expected to take actions that cause the risk-free rate to increase. If all else the same,including the level of market required return, we would expect a firm's cost of equity to _______.

These days the stock market is worried that Federal Reserve is expected to take actions that cause the risk-free rate to increase. If all else the same,including the level of market required return, we would expect a firm's cost of equity to _______.

Learn More :

Share this