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    Business
  3. Study Set
    Principles of Finance
  4. Exam
    Exam 12: The Cost of Capital
  5. Question
    Which of the Following Methods of Estimating the Cost of Common
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Which of the Following Methods of Estimating the Cost of Common

Question 80

Question 80

Multiple Choice

Which of the following methods of estimating the cost of common equity for a firm treats risk explicitly?


A) DCF method.
B) CAPM method.
C) Composite method.
D) Bond-yield-plus-risk-premium method.
E) Answers b and d are both correct.

Correct Answer:

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