The cost of debt can be given as a before-tax or after-tax amount. The cost of equity is always given as: Select one: a. A before-tax amount by convention. b. A before-tax amount since dividends and buybacks are subtracted on the 'Profit and Loss' before calculating taxes. c. A before-tax amount to be consistent with how yields to maturity on debt are normally stated. d. An after-tax amount by convention. e. An after-tax amount since dividends and buybacks are subtracted after calculating taxes in the income statement. Suppose that the Capital Asset Pricing Model (CAPM) gives correct required returns based on the current risk free rate, market risk premium from recent surveys and equity betas from past stock prices and market portfolio data. Which of the following statements about a firm's cost of equity is NOT correct? The firm's required return on equity can be calculated by finding: Select one: a. The firm's stocks' dividend yield plus capital return over the last year. b. The firm's stock's CAPM required return. c. An average of similarly levered firms' CAPM required returns. d. An average of similarly levered firms' required returns based on the dividend discount model