📊 Financial Management
Q. The cost of equity capital is all of the following EXCEPT:
  • (A) the minimum rate that a firm should earn on the equity-financed part of an investment.
  • (B) a return on the equity-financed portion of an investment that, at worst, leaves the market price of the stock unchanged.
  • (C) by far the most difficult component cost to estimate.
  • (D) generally lower than the before-tax cost of debt.
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✅ Correct Answer: (D) generally lower than the before-tax cost of debt.

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