Which of the following causes a firms cost of capital WACC t

Which of the following causes a firm\'s cost of capital (WACC) to siffer from an investor\'s required rate of return on the company\'s common stock Select one: the incurrence of flotation costs when new securities are issued None of the above - the WACC and required return are the same. The market risk premium exceeds 12%. the fact that the risk free rate of interest has increased.

Solution

a