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Basic Question 8 of 14

A company's cost of capital may be affected by one or more of the following factors:

1. interest rates
2. tax rates
3. capital structure
4. dividend policy
5. investment policy

Which of the following statements is true?

A. Only factors 1 and 2 are under the company's direct control.
B. Only factors 3, 4, and 5 are under the company's direct control.
C. All five factors are under the company's direct control.

User Contributed Comments 4

User Comment
Rotigga If you're Goldman, 1 and 2 are also under the company's direct control.
StanleyMo GS? so powerful?
spoongolfs GS = #nice
safash @Rotigga tat was funny.lol
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Learning Outcome Statements

calculate and interpret the weighted-average cost of capital for a company

CFA® 2024 Level I Curriculum, Volume 2, Module 6.