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Which of these are situations where CAPM would be an inappropriate method of computing the cost of equity based on a firm's historical beta? Select
Which of these are situations where CAPM would be an inappropriate method of computing the cost of equity based on a firm's historical beta? Select all that apply.
A firm does not pay dividends.
A firm varies its dividends based on current earnings
There are insufficient historical observations of beta.
The risk level of the firm is changing.
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Personal Finance After 50 For Dummies
Authors: Eric Tyson
3rd Edition
978-1119724186
