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livesimply livesimply
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3 years ago
The cost of equity for a firm is

▸ determined by directly observing the rate of return required by equity investors.

▸ based on estimates derived from financial models.

▸ equivalent to a leveraged firm's cost of capital.

▸ equal to the risk-free rate of return plus the market risk premium.

▸ equal to the risk-free rate of return plus the dividend growth rate.
Textbook 
Corporate Finance Online

Corporate Finance Online


Edition: 2nd
Authors:
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lierac00lierac00
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3 years ago
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livesimply Author
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3 years ago
Smart ... Thanks!
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Yesterday
Thanks
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2 hours ago
I appreciate what you did here, answered it right Smiling Face with Open Mouth
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