The Cost of Equity Capital Is

question 11

Multiple Choice

The cost of equity capital is:

• A) the expected return on the firm's stock that investors require.
• B) frequently estimated by using the Capital Asset Pricing Model (CAPM).
• C) generally considered to be a linear function of the systematic risk inherent in the security.
• D) All of these.

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Definitions:

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The system of law concerned with private relations between members of a community rather than criminal, military, or religious affairs.

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The principle that Parliament has the highest legal authority within a jurisdiction, making laws that are not subject to judicial review or limitation by other bodies.

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