Two Techniques for Determining the Cost of Equity Include Using

question 50

True/False

Two techniques for determining the cost of equity include using:
1.The Security Market Line,and 2.The Internal Rate of Return.

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Definitions:

Foreign Marketplace

An external market outside of one’s own country where goods, services, and financial instruments are traded.

Customs Union

An agreement between two or more countries to remove trade barriers and reduce tariffs among them, and to establish a common external tariff against other countries.

Common External Tariff

A uniform tariff rate adopted by a customs union or common market on imports from countries outside the union.

Free Trade Area

A region where member countries have agreed to reduce or eliminate trade barriers, such as tariffs and quotas, among themselves.