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papahomer papahomer
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6 years ago
A strong stock market and reasonably good earnings have caused the price of the firm's common stock to increase by 25%.
A) This will have no effect on the firm's cost of capital.
B) All thing's equal, this will increase the firm's cost of capital.
C) All thing's equal, this will lower the firm's cost of capital.
D) This will only affect the cost of capital if the firm uses CAPM to compute the cost of equity.
Textbook 
Financial Management: Principles and Applications

Financial Management: Principles and Applications


Edition: 13th
Authors:
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LutionalLutional
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6 years ago
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papahomer Author
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6 years ago
Thanks
gage
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Helped a lot
brina10
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Brilliant ツ
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