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Which statement accurately describes the Bond Yield plus Risk Premium Approach? a. It estimates the cost of common equity, by adding a premium to the
Which statement accurately describes the Bond Yield plus Risk Premium Approach?
a. | It estimates the cost of common equity, by adding a premium to the firm's cost of debt. | |
b. | It estimates the yield on bonds by using the financial calculator. | |
c. | It estimates the yield on bonds using the Capital Asset Pricing Model (CAPM) | |
d. | It estimates the cost of common equity by adding the market risk premium to the cost of debt. |
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