Question

Which of the following are reasons an analyst should allow for changes in cost of capital in an emerging market?

I. Reforms in the tax system.

II. Changes in the cost of debt.

III. Evolving inflation expectations.

IV. Changes in a company’s capital structure.

a) I and II only.

b) I, III, and IV only.

c) II and IV only.

d) I, II, III, and IV.

Answer

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