Start learning →

As a firm's risk rises, what happens to its cost of capital?

AIt increases
BIt becomes zero
CIt decreases
DIt stays fixed
Answer & Solution
Correct answer: A. It increases
Capital providers expect more reward for supplying funds to a riskier firm.
Practise this question with Quill — CA Final →

Keep practising Dividend Discount Model

Browse all Dividend Discount Model questions for CA Final, or explore more Strategicfinancialmanagement topics.

Start a Dividend Discount Model lesson →
Related questions