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When Estimating the Cost of Equity by Use of the Bond-Yield-Plus-Risk-Premium

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When estimating the cost of equity by use of the bond-yield-plus-risk-premium method, we can generally get a good idea of the interest rate on new long-term debt, but we cannot be sure that the risk premium we add is appropriate. This problem leaves us unsure of the true value of rs.


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Operations

The activities and processes used in making both tangible and intangible products.

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