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    Business
  3. Study Set
    Basic Finance
  4. Exam
    Exam 21: Cost of Capital
  5. Question
    In the Capital Assets Pricing Model, the Cost of Equity
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In the Capital Assets Pricing Model, the Cost of Equity

Question 3

Question 3

Multiple Choice

In the capital assets pricing model, the cost of equity is investors' required return and includes​
1) the expected return on the market
2) the firm's beta
3) the firm's tax rate


A) ​1 and 2
B) 1 and 3​
C) 2 and 3​
D) 1, 2, and 3​

Correct Answer:

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