Question

Financial reports provide information that can reduce investors' uncertainty about the company's opportunities and risks, thereby raising the company's cost of capital.a)trueb)false

Answer 1

False

Step-by-step explanation:

The given statement is false Financial reports does not provide information that can reduce investors uncertainty about the company's opportunities and risks, thereby raising the company's cost of capital.

Financial report of a company contains balance sheet, income statement and discussion of the management. It also indicate company's financial health and earning potential. But it cannot reduce the risk of investors uncertainty.