The cost of equity for a firm Multiple Choice tends to remain static...
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Accounting
The cost of equity for a firm
Multiple Choice
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tends to remain static for firms with increasing levels of risk.
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increases as the unsystematic risk of the firm increases.
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can be estimated from the capital asset pricing model or the dividend growth model.
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equals the risk-free rate plus the market risk premium.
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equals the firms pre-tax weighted-average cost of capital.
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None of the options are correct.
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