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When using the capital asset pricing model to estimate the cost of equity for a firm being valued, beta is often adjusted to account for:
When using the capital asset pricing model to estimate the cost of equity for a firm being valued, beta is often adjusted to account for:
Debt ratios of comparable firms that are leveraged differently from that of the firm being valued | ||
The level of cash held at comparable firms
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The overall level of risk in the market
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The default rate of corporate bonds
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All of the above |
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