BUSINESS FINANCE II (İŞLETME FİNANSI II) - (İNGİLİZCE) Dersi Cost of Capital soru detayı:

PAYLAŞ:

SORU:

The component cost is the required return of the capital component which varies with investors’ risk. In case of equity financing, what is stockholders’ required return altered by?


CEVAP:

In case of equity financing, stockholders’ required return is altered by the riskiness of the investments undertaken by the firm.