The Cost of Equity for a fiRm Is

The cost of equity for a firm is:

A) Determined by directly observing the rate of return required by equity investors.
B) Based on estimates derived from financial models.
C) Equivalent to a leveraged firm's cost of capital.
D) Equal to the risk-free rate of return plus the market risk premium.
E) Equal to the risk-free rate of return plus the dividend growth rate.