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To Estimate the Cost of Equity Capital for a Firm

Question 12

Multiple Choice

To estimate the cost of equity capital for a firm using the CAPM,it is necessary to have:


A) company financial leverage, beta, and the market risk premium.
B) company financial leverage, beta, and the risk-free rate.
C) beta, company financial leverage, and the industry beta.
D) beta, company financial leverage, and the market risk premium.
E) beta, the risk-free rate, and the market risk premium.

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