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Which one of the following statements related to the SML/CAPM approach to equity valuation is correct? Assume the firm uses debt in its capital structure

image text in transcribed Which one of the following statements related to the SML/CAPM approach to equity valuation is correct? Assume the firm uses debt in its capital structure The model is dependent upon an estimate of the market risk premium. The model generally produces the same cost of equity as the dividend growth model. The model applies only to non-dividend paying firms. The model applies only to dividend paying firms. This model considers a firm's rate of growth

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