Multiple Choice
Which of following is a situation in which you would want to use the CAPM approach for estimating the component cost of equity?
A) When you are able to estimate the market risk premium with certainty.
B) When you are able to estimate the risk-free rate with certainty.
C) When you are able to estimate the firm's beta with certainty.
D) When the firm pays a constant dividend.
Correct Answer:
Verified
Correct Answer:
Verified
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