About cost-of-equity estimation

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Reference no: EM131595903

Which of the following statements about cost-of-equity estimation is most correct?

All approaches always produce estimates that fall within a narrow range.

The risk premium used in the debt-cost-plus-risk-premium approach is the same as the risk premium used in the CAPM approach.

The debt-cost-plus-risk-premium approach can be used when the business does not have publicly traded equity.

Reference no: EM131595903

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