An Advantage to Using the SML Approach for Calculating the Cost

question 264

True/False

An advantage to using the SML approach for calculating the cost of equity it that this approach explicitly accounts for risk.

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Definitions:

David Birch

An American economist noted for his research on job creation, small and medium enterprises, and entrepreneurial activity.

MIT Researcher

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American Entrepreneurs

Individuals in the United States who start, organize, manage, and assume the risks of a business or enterprise.

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Individuals who seek to promote the welfare of others, especially by the generous donation of money to good causes.