Which of the following statements is correct regarding the cost of capital estimation?

I. Regression beta is often used when the firm has just been through restructuring such as having acquired an unrelated business or spun off a division.

II. Analysts often use the yield on 10-year T-STRIPS as a proxy for the risk-free rate because these bonds are liquid and because their current yields reflect the markets

Which of the following statements is correct regarding the cost of capital estimation? 1. Regression beta is often used when the firm has just been through restructuring such as having acquired an unrelated business or spun off a division. II. Analysts often use the yield on 10-year T-STRIPS as a proxy for the risk-free rate because these bonds are liquid and because their current yields reflect the market's expectations of the future. Ill. If the firm's debt is private and unrated, analysts have to rely on the yield to maturity approach using information such as coupon rate, time to maturity and face value to estimate the cost of debt. Select one: A. I only B. Il only C. III only D. I, II and III E. None of the choice combinations in A, B, C and D are correct Clear my choice