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Which of the following would suggest that it would better to use the CAPM estimate for the cost of equity rather than the average of

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Which of the following would suggest that it would better to use the CAPM estimate for the cost of equity rather than the average of the CAPM and dividend discount model cost of equity estimates? Multiple Choice The company has more debt in its capital stucture than equity. The company has a very low beta, so the dividend discount model will provide a much different estimate of the cost of equity. The company pays no dividends. None of these answers. It is always necessary to use both the CAPM and DDM to estimate the cost of equity. O The company just announced a substantial increase in its dividend and it is expected to continue to increase future dividends at a steady rate

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