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____ Equals the Capitalized Value of the Company's Operating Earnings

question 72

Multiple Choice

____ equals the capitalized value of the company's operating earnings minus its liabilities.


Definitions:

Risk-Free Rate

The hypothetical yield on a risk-free investment, often exemplified by state-issued bonds.

Cost Of Equity

The return that a company must offer investors to compensate for the risk of investing in its shares.

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