Which of the following is not true about the determination of components used to determine the weighted average cost of capital?   Either Capital Asset Pricing model approach or Discounted Cash Flow model are acceptable method of determining the cost of retained earning   Tax rates are excluded in getting the cost of retained earnings and cost of issuance of new equity   The value of a preferred share can be computed by multiplying the cost of preferred share with the uniform preferred dividends   Discounted cash flow approach can be applied if data related to market return, nominal risk-free rate, and beta are not available

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Which of the following is not true about the determination of components used to determine the weighted average cost of capital?
 
Either Capital Asset Pricing model approach or Discounted Cash Flow model are acceptable method of determining the cost of retained earning
 
Tax rates are excluded in getting the cost of retained earnings and cost of issuance of new equity
 
The value of a preferred share can be computed by multiplying the cost of preferred share with the uniform preferred dividends
 
Discounted cash flow approach can be applied if data related to market return, nominal risk-free rate, and beta are not available
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