Business, 11.02.2020 19:46 naiajNan

The cost of equity for a firm:
a) equals the risk-free rate plus the market risk premium.
b) tends to remain static for firms with increasing levels of risk.
c) none of the options are correct.
d) equals the firm’s pre-tax weighted-average cost of capital.
e) can be estimated from the capital asset pricing model or the dividend growth model.
f) increases as the unsystematic risk of the firm increases.

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The cost of equity for a firm:
a) equals the risk-free rate plus the market risk premium.

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