The cost of equity can be inferred by using the capital asset pricing model which:
A) estimates that cost of equity as being approximately to cost of debt.
B) calculates the cost of equity by applying the discount rate to the amount of equity being raised.
C) estimates the cost of equity as approximately the average of the cost of equity over the last year.
D) calculates the cost of equity as the risk-free rate of return plus the risk premium.
Correct Answer:
Verified
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