All else constant, which one of the following will increase a company's cost of equity if the company computes that cost using the security market line approach? assume the firm currently pays an annual dividend of $1 a share and has a beta of 1.2.
a. a reduction in the dividend amount
b. an increase in the dividend amount
c. a reduction in the market rate of return
d. a reduction in the risk free rate
d. a reduction in the firms beta

True or false entrepreneurs try to meet the needs of the marketplace by supplying a service or product

Why is it easier for new entrants to get involved in radical innovations when compared to incumbent firms? a. unlike incumbent firms, new entrants do not have to face the high entry barriers, initially. b. new entrants are embedded in an innovation ecosystem, while incumbent firms are not. c. unlike incumbent firms, new entrants do not have formal organizational structures and processes. d. incumbent firms do not have the advantages of network effects that new entrants have.

Abond purchased for $950 was sold for $980 after one year. the interest received during the year is $25. the bond's yield is: