The risk premium for a firm is based on the:
A) Firm's dividend history and growth rate.
B) Firm's level of risk relative to the market and the firm's rate of growth.
C) Risk-free rate of return and the growth rate of the firm.
D) Market risk premium and the firm's level of risk relative to the market.
E) Market risk premium and the risk-free rate of return.
Correct Answer:
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