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    Principles of Corporate Finance Study Set 3
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    Exam 9: Risk and the Cost of Capital
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    Briefly Explain How a Firm's Cost of Equity Is Estimated
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Briefly Explain How a Firm's Cost of Equity Is Estimated

Question 69

Question 69

Essay

Briefly explain how a firm's cost of equity is estimated using the capital asset pricing model (CAPM).

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The first step estimates the beta of the...

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