Post Utme Unn 2019 Commerce Question 37

Practice objective / multiple choice question 37 from the 2019 Post Utme Unn Commerce examination.

Post Utme Unn 2019 Commerce Objective / Multiple Choice
Question 37 POST_UTME_UNN • 2019 • COMMERCE • objective

A firm's cost of capital is the minimum return required by investors to invest in the firm. What is the primary factor that affects a firm's cost of capital?

Answer Options

A. Risk-free rate
Correct Answer B. Market risk premium
C. Debt-to-equity ratio
D. Asset beta
Correct Answer
B
Correct Option:
Market risk premium

About This Question

This is Post Utme Unn 2019 Commerce Question 37. It is one of the objective questions from the 2019 Post Utme Unn Commerce examination.

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