A firms overall cost of equity

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A firm's overall cost of equity is:

Generally less than the firm's WACC given a debt-equity ratio of .40.

Unaffected by changes in the market risk premium.

Highly dependent upon the risk level of the firm.

Generally less than the firm's after tax cost of debt.

Inversely related to changes in the firm's tax rate.

Reference no: EM13947452

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