Which of the Following Statements Is Correct

question 6

Multiple Choice

Which of the following statements is correct?

• A) Under normal conditions,the CAPM approach to estimating a firm's cost of retained earnings gives a better estimate than the DCF approach.
• B) The CAPM approach is typically used to estimate a firm's flotation cost adjustment factor,and this factor is added to the DCF cost estimate.
• C) The risk premium used in the bond-yield-plus-risk-premium method is the same as the one used in the CAPM method.
• D) In practice (as opposed to in theory),the DCF method and the CAPM method usually produce exactly the same estimate for r_s.
• E) The above statements are all false.

---

Definitions:

Cognitive-behavioral Therapy

A form of psychotherapy that treats problems by modifying dysfunctional emotions, behaviors, and thoughts.

Integrative Behavioral

An approach in therapy that combines techniques from different therapeutic disciplines to tailor treatment to individual patient needs.

Couples Therapy

A form of psychotherapy aimed at helping romantic partners improve their relationship through improved communication, problem-solving, and conflict resolution strategies.

Interpersonal Role Dispute

A situation where there is conflict between individuals due to differing expectations about their roles.