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How do you determine the Cost of Equity? Ask your stockholders, or their representatives on the Board of Directors Take the risk-free rate and add
How do you determine the Cost of Equity?
Ask your stockholders, or their representatives on the Board of Directors
Take the risk-free rate and add the product of your equity beta and the market risk premium
Multiply your cost of debt by 1 minus the tax rate
Subtract your cost of debt from your WACC
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