All of the Following Methods May Be Used to Determine

question 83

Multiple Choice

All of the following methods may be used to determine the cost of equity capital (ke) for a non-dividend-paying stock except

• A)the risk premium on debt approach
• B)the Capital Asset Pricing Model approach
• C)comparing with similar dividend-paying stocks in the industry
• D)the simulation with growth expectations approach

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Definitions:

Subjective

Based on or influenced by personal feelings, tastes, or opinions rather than external facts or evidence.

Sales Rep

A professional who represents a company's products or services, aiming to engage potential customers and secure sales.

Frontline Emissary

An individual representing a company or organization, dedicated to navigating and mediating interactions between the company and its customers.

Cold Calls

A method of prospecting in which salespeople telephone or go to see potential customers without appointments.