Post Utme Veritas University 2024 Commerce Question 7

Practice objective / multiple choice question 7 from the 2024 Post Utme Veritas University Commerce examination.

Post Utme Veritas University 2024 Commerce Objective / Multiple Choice
Question 7 POST_UTME_VERITAS_UNIVERSITY • 2024 • COMMERCE • objective

A firm's cost of capital is the minimum return required by investors for a given level of risk. What is the primary factor that affects a firm's cost of capital?

Answer Options

A. The firm's size and market share
Correct Answer B. The firm's financial leverage and debt-to-equity ratio
C. The firm's industry and market conditions
D. The firm's management team and corporate governance
Correct Answer
B
Correct Option:
The firm's financial leverage and debt-to-equity ratio

About This Question

This is Post Utme Veritas University 2024 Commerce Question 7. It is one of the objective questions from the 2024 Post Utme Veritas University Commerce examination.

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