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14- Which of the following is considered an advantage to using the SML approach for calculating the cost of equity? I. This approach explicitly accounts
14- Which of the following is considered an advantage to using the SML approach for calculating the cost of equity?
I. This approach explicitly accounts for risk.
II. This approach applies only to companies that pay dividends.
III. This approach is extremely sensitive to the estimated dividend growth rate.
A) I only
B) III only
C) I and II only
D) II and III only
E) I, II, and III
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