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You are in the process of calculating the cost of capital of your firm using the capital asset pricing model (CAPM). What are (1) two
You are in the process of calculating the cost of capital of your firm using the capital asset pricing model (CAPM). What are (1) two common elements/factors and (2) a third factor for each in determining the cost of equity and cost of debt? EXPLAIN (6 pts.)
Two common factors:
Third factor:
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