Question
Which of the following statements is correct? Group of answer choices The CAPM method is typically used to estimate a firms cost of equity. A
Which of the following statements is correct?
Group of answer choices
The CAPM method is typically used to estimate a firms cost of equity.
A bond has a coupon rate of 6 percent and the bond makes semiannual coupon payments. The dollar amount of coupon interest received every six months is $15.
The cost of debt for a firm is a weighted average of the costs of the different types of equity financing used by the firm.
All the answers are correct.
Since unique risk cannot be eliminated by holding a diversified portfolio, unsystematic risk is the only risk that investors require compensation for bearing.
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