The cost of equity capital is
A)the expected return on the firm's stock that investors require.
B)frequently estimated by using the Capital Asset Pricing Model (CAPM).
C)generally considered to be a linear function of the systematic risk inherent in the security.
D)all of the options

Question

Quizplus · Accepted Answer

The cost of equity capital is the expected return on the firm's stock that investors require. It is often estimated by using the Capital Asset Pricing Model (CAPM) and is generally considered to be a linear function of the systematic risk inherent in the security. Therefore, all of the given options are correct.

The Cost of Equity Capital Is