Which of the Following Statements Is Correct

question 97

Multiple Choice

Which of the following statements is correct?

• A) Although some methods of estimating the cost of capital encounter severe difficulties,the CAPM is a simple and reliable model that provides great accuracy and consistency in estimating the cost of capital.
• B) The DCF model is preferred over other models to estimate the cost of equity because of the ease with which a firm's growth rate is obtained.
• C) The bond-yield-plus-risk-premium approach to estimating the cost of equity is not always accurate but its advantages are that it is a standardized and objective model.
• D) The tax savings associated with depreciation are an additional source of capital and,in fact,represent the largest single source of funds for some firms.
• E) None of the above is a correct statement.

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Definitions:

Collective Action

The action taken together by a group of people with a shared goal, often aimed at social or political change.

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A strong negative reaction by a large number of people, especially to a social or political development.

Feminism

A social and political movement striving for the equality of all genders, focusing on addressing and challenging gender-based inequalities.

Feminists

Individuals who advocate for equal rights and opportunities for women, aiming to address and eliminate gender-based inequalities.