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You have been chosen to provide an estimate of your firm's cost of equity to management for the upcoming budgetary planning meeting. You have calculated

You have been chosen to provide an estimate of your firm's cost of equity to management for the upcoming budgetary planning meeting. You have calculated the cost of equity using three approaches, CAPM, DCF and Bond Yield Plus Risk Premium. You are confident in your numbers but the results vary. You should:

Group of answer choices

Always Choose the Bond Yield Plus Risk Premium result

Always choose the CAPM result

Always choose the DCF result

Throw out the highest and average the other two

Average the three results

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