Asked by khalid abualrob on May 08, 2024
Verified
Financial reports provide information that can reduce investors' uncertainty about the company's opportunities and risks,thereby raising the company's cost of capital.
Cost Of Capital
The rate of return that a company must pay to its creditors and shareholders for the use of their funds.
Financial Reports
Official documents containing financial data about a company, including balance sheets, income statements, and cash flow statements.
- Comprehend the aspects of ambiguity and forecasts within financial statements.
Verified Answer
UT
Under TrainingMay 15, 2024
Final Answer :
False
Explanation :
Financial reports reduce investors' uncertainty by providing transparent information about a company's performance, which can lower the company's cost of capital by increasing investor confidence.
Learning Objectives
- Comprehend the aspects of ambiguity and forecasts within financial statements.
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