A firm's overall cost of equity is directly observable in the financial markets.

Name: A firm's overall cost of equity is directly observable in the financial markets.
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The cost of equity is not directly observable in the financial markets because it represents the return required by equity investors for taking on the risk of investing in the firm, which is subjective and varies among investors. It is typically estimated using models such as the Capital Asset Pricing Model (CAPM).

A Firm's Overall Cost of Equity Is Directly Observable in the Financial