Question: Which of the following methods explicitly recognizes a firms risk when determining the estimated cost of equity? a. Capital asset pricing model. b. Dividend-yield-plus-growth model.

Which of the following methods explicitly recognizes a firm’s risk when determining the estimated cost of equity?

a. Capital asset pricing model.

b. Dividend-yield-plus-growth model.

c. Bond-yield-plus model.

d. Return on equity.

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