Question

Due to changes in regulatory requirements, the transactions costs associated with selling corporate securities increased by $1 per share. This change will Group of answer choices cause the cost of capital to decrease. have no effect on the cost of capital because transactions costs are expensed immediately. cause the cost of capital to decrease only if investors may be billed for part of the increase in transactions costs. cause the cost of capital to increase.

Answer 1

cause the cost of capital to increase.

Step-by-step explanation:

In the case when there is any changed made with regard to regulatory requirements so the cost of transaction that attached with the securities would rise by $1 each share this change will cause an increase in the cost of capital as if there is any transaction that associated with the corporate securities so this would be covered under the cost of capital

hence, the last option is right