Which of the following will directly impact the cost of equity?
A) expected growth rate in sales
B) expected future tax rates
C) stock price
D) profit margins

Question

Quizplus · Accepted Answer

The cost of equity is directly impacted by the stock price, as it is used in models like the Dividend Discount Model (DDM) and the Capital Asset Pricing Model (CAPM) to determine the expected return required by investors.

Which of the Following Will Directly Impact the Cost of Equity