Solved

The Cost of Equity Can Be Inferred by Using the Capital

Question 33

Multiple Choice

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:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents