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The Correct Treasury Rate to Use in Calculating the Cost

question 28

True/False

The correct Treasury rate to use in calculating the cost of equity (when using the CAPM) for a firm is a short-term rate.


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Motivational Factor

An element or circumstance that stimulates an individual’s enthusiasm, energy, or desire to undertake specific actions or persevere in a task.

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Expressions of approval, commendation, or admiration directed towards a person, group, or entity.

Informal Style

A casual and relaxed way of communication or presentation not bound by strict formal rules or conventions.

Linear Manner

A sequential approach to processes or presentation, moving straightforwardly from one point to the next.

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