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This method is subjective based on the additional risk that a common equity investor would incur over and above the risk faced by a debt
This method is subjective based on the additional risk that a common equity investor would incur over and above the risk faced by a debt investor (lender) in the same company. The calculation adds a risk premium to the pre-tax cost of debt
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Multinational financial management
Authors: Alan c. Shapiro
10th edition
9781118801161, 1118572386, 1118801164, 978-1118572382
