单选题 Which of the following events will reduce a company's weighted average cost of capital? A. A reduction in the market risk premium. B. An increase in expected inflation. C. An increase in the company's beta.

【正确答案】 A

【答案解析】An increase in either the company's beta or the market risk premium will cause the WACC to increase using the CAPM approach. A reduction in the market risk premium will reduce the cost of equity for WACC.