When Estimating the Cost of Equity by Use of the Bond-Yield-Plus-Risk-Premium

question 61

True/False

When estimating the cost of equity by use of the bond-yield-plus-risk-premium method, we can generally get a good idea of the interest rate on new long-term debt, but we cannot be sure that the risk premium we add is appropriate.This problem leaves us unsure of the true value of r_s.

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Nondisclosing

A communication style where an individual chooses not to share certain information.

Total Disclosure

The act of revealing every piece of relevant information or fact without withholding anything, often in the context of communication or negotiation.

Real Feelings

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