单选题 If central bank actions caused the risk-free rate to increase, the cost of debt and equity capital would most likely: Cost of debt capital Cost of equity capital ①A. increase increase ②B. increase decrease ③C. decrease increase
【正确答案】 A
【答案解析】An increase in the risk-free rate will cause the cost of equity to increase. It would also cause the cost of debt to increase. In either case, the nominal cost of capital is the risk-free rate plus the appropriate premium for risk.