When Using the Bond Yield Plus Risk Premium Approach to Estimating

question 94

Multiple Choice

When using the bond yield plus risk premium approach to estimating the cost of equity,the equity risk premium is usually about:

• A) 3-5%.
• B) 8-10%.
• C) 20-25%.
• D) 10-15%.
• E) 30-33%.

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Organic Chemicals

Compounds containing carbon that are found in or produced by living organisms.

Ozone Depletion

The thinning and reduction of the ozone layer in the Earth's atmosphere, primarily caused by the release of chemical compounds containing bromine and chlorine.

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Relating to the science, art, and practice of cultivating land, producing crops, and raising livestock.

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The variety of life in the world or in a particular habitat or ecosystem, including species diversity, genetic diversity, and ecosystem diversity.