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The cost of equity for a firm: 1. Tends to remain static for firms with increasing levels of risk 2.Increases as the unsystematic risk of
The cost of equity for a firm:
1. Tends to remain static for firms with increasing levels of risk | ||
2.Increases as the unsystematic risk of the firm increases | ||
3.Ignores the firm's risks when that cost is based on dividend growth | ||
4.Equals the risk free rate plus the market risk premium |
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