Question: When using the capital asset pricing model ( CAPM ) to determine the cost of equity ( Ke ) , which of the following is

When using the capital asset pricing model (CAPM) to determine the cost of equity (Ke),
which of the following is the most accurate statement?
Multiply the cost of debt by one minus the corporate tax rate.
Subtract your cost of debt from the WACC.
Take the risk free rate and add the product of the risk premium and the equity beta.
Contact the representatives on the company's board of directors.

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