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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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