statements about cost-of-equity estimation is most correct? The CAPM approach is always superior to the DCF approach. The risk premium used in the debt-cost-plus-risk-premium approach is the same as the risk premium used in the CAPM approach. Because the CAPM and DCF approaches use market data, they provide precise cost-of-equity estimates. The debt-cost-plus-risk-premium approach can be used when the business does not have publicly traded equity. All approaches always produce estimates that fall within a narrow range.