The Cost of Equity Capital Is

question 25

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:

Corporate Social Responsibility

Business practices that involve initiatives that benefit society and contribute positively to the community and environment.

Controversial Industries

Sectors of the economy that generate public debate or disagreement, often due to ethical, environmental, or health concerns.

Triple Bottom Line

An accounting framework that incorporates three dimensions of performance: social, environmental, and financial.

Corporate Social Responsibility

A business model that helps a company be socially accountable—to itself, its stakeholders, and the public—by practicing sustainable and ethical operations.