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Is increased when an assets cash flows are considered

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is increased when an asset's cash flows are considered to be riskierC.is a fixed rate that remains the same for all investors regardless of changes inthe marketD.Both (A) and (B)FeedbackYour answer is incorrect.The correct answer is: Both (A) and (B)
Question4IncorrectMark 0.00 out of 1.00Flag questionQuestion textThe ordinary shares of ABC Company are currently trading at $6. A new sharewould be made at an offer price of $5.90. Issue costs are expected to be 4% ofthe proceeds of the issue. The last dividend was $0.60 and the next dividend isdue a year from now. The estimated growth rate is 4% p.a.What is ABC Company’s after tax cost of an ordinary share issue is:Select one:
Question5IncorrectMark 0.00 out of 1.00Flag questionQuestion textA company’s share price is currently $4.72. Its most recent dividend was50 cents per share; dividends are expected to grow indefinitely at a rate of 4%pa and the tax rate is 30%.The company’s before-tax cost of retained earnings is:
Select one:

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