If the Capital Asset Pricing Model Is Used, the Cost

question 37

Multiple Choice

If the capital asset pricing model is used, the cost of equity depends on
1) the firm's earnings growth rate
2) the firm's beta
3) the return on the market

• A)​1 and 2
• B)​1 and 3
• C)​2 and 3
• D)​1, 2, and 3

Analyze the impact of activity levels on budget planning and performance evaluations.

Understand the difference between favorable and unfavorable variances and their significance.

Learn about the various types of costs (fixed, variable) in budgeting and performance reports.

Apply cost estimates to calculate budget variances.

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