All else constant, which one of the following will increase a firm's cost of equity...
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Finance
All else constant, which one of the following will increase a firm's cost of equity if the firm computes that cost using both debt and equity financing? Assume the firm currently pays an annual dividend of $1 a share and has a beta of 1.2.
A a reduction in the announced dividend amount
B an increase in the company's repurchase of common stock
C an increase in the company's debt-to-capital ratio
D a reduction in the company's equity beta
E a reduction in the company's future dividend growth rate
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