The Cost of Equity Is More Difficult to Determine Than

The cost of equity is more difficult to determine than the cost of debt because:

A) cash flows to equity-holders is not contractually set,so when that cash flow will take place is not certain.
B) the discount rate used to determine cost of equity is not set as it is in determining the cost of debt.
C) the transaction costs of issuing equity are not as easy to determine as the transaction costs of issuing debt.
D) the cost of equity is subject to more contingencies than the cost of debt.

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