The appropriate risk-free rate to use when calculating the cost of equity for a firm is
A) a long-term Treasury rate.
B) a short-term Treasury rate.
C) a 50/50 mix of short-term and long-term Treasury rates.
D) none of the above.
Answer: A
The appropriate risk-free rate to use when calculating the cost of equity for a firm is
A) a long-term Treasury rate.
B) a short-term Treasury rate.
C) a 50/50 mix of short-term and long-term Treasury rates.
D) none of the above.
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.