[amp_mcq option1=”policy of capital structure” option2=”policy of dividends” option3=”policy of investment” option4=”all of above” correct=”option4″]<\/p>\n
The correct answer is D. all of the above.<\/p>\n
A company’s capital structure is the mix of debt and equity financing that it uses to fund its operations. The dividend policy is a company’s decision on how much of its earnings to distribute to shareholders in the form of dividends. The investment policy is a company’s decision on how much money to invest in new projects.<\/p>\n
All of these factors can affect a company’s capital cost. For example, if a company takes on more debt, its interest expense will increase, which will increase its cost of capital. If a company pays out more dividends, it will have less money to invest in new projects, which could also increase its cost of capital. And if a company invests in more risky projects, its cost of capital will also increase.<\/p>\n
Therefore, a company can affect its capital cost through its policy of capital structure, its policy of dividends, and its policy of investment.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”policy of capital structure” option2=”policy of dividends” option3=”policy of investment” option4=”all of above” correct=”option4″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"class_list":["post-48343","post","type-post","status-publish","format-standard","hentry","category-financial-management","no-featured-image-padding"],"yoast_head":"\n