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  3. Study Set
    Principles of Managerial Finance
  4. Exam
    Exam 9: The Cost of Capital
  5. Question
    Use of the Capital Asset Pricing Model (CAPM) in Measuring
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Use of the Capital Asset Pricing Model (CAPM) in Measuring

Question 6

Question 6

True/False

Use of the Capital Asset Pricing Model (CAPM) in measuring the cost of common stock equity differs from the constant growth valuation model in that it directly considers the firm's risk as reflected by beta.

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