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Under the abnormal earnings approach of equity valuation, investors willingly pay a premium for those firms that: A-earn less than the cost of equity capital.

Under the abnormal earnings approach of equity valuation, investors willingly pay a premium for those firms that:

A-earn less than the cost of equity capital.

B-produce negative abnormal earnings.

C-produce positive abnormal earnings.

D-earn an amount equal to the equity cost of capital.

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