The cost of common stock equity is
A. the cost of the guaranteed stated dividend.
B. the rate at which investors discount the expected dividends of the firm.
C. the after-tax cost of the interest obligations.
D. the historical cost of floating the stock issue.
Answer:B
The cost of common stock equity is
A. the cost of the guaranteed stated dividend. B. the rate at which investors discount the expected dividends of the firm. C. the after-tax cost of the interest obligations. D. the historical cost of floating the stock issue.