What of the following best describe the approaches analysts typically take when calculating the cost of capital?

Question

Quizplus · Accepted Answer

Personal judgement aided by a theoretical framework is the most common approach analysts take when calculating the cost of capital. This is because the cost of capital is a complex and subjective concept, and there is no single "correct" way to calculate it. Analysts must therefore use their own judgement to determine which factors to consider and how to weight them. However, they can also use theoretical frameworks to help them make these decisions.

What of the Following Best Describe the Approaches Analysts Typically