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The Capital Asset Pricing Model is used to determine: The total amount of companys assets The market value of a company The cost of debt
- The Capital Asset Pricing Model is used to determine:
- The total amount of companys assets
- The market value of a company
- The cost of debt capital
- The cost of equity capital
- The companys cost of capital represents:
- The investors minimum required return on investment
- The total dollar investment within a company
- The minimum amount of Free Cash Flow a company needs to earn
- The difference between Net Income and invested capital
- The market risk premium represents:
- The difference between the return on the market portfolio and the return on the risk-free rate .
- The return on the market portfolio.
- The cost of equity capital for a company.
- The difference between a companys cost of equity capital and its cost of debt capital.
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