Which of the following statements is/are correct? 1.An increase in the cost of equity leads...

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Finance

Which of the following statements is/are correct?

1.An increase in the cost of equity leads to fall in share price.

2.Investors faced with increased risk will expect increased return as compensation.

3.The cost of debt is usually lower than the cost of preference shares

Select one:

a. 2 only

b. 1 and 3 only

c. 2 and 3 only

d. 1,2 and 3

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