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    Exam 13: Valuation: Earnings-Based Approaches
  5. Question
    The Appropriate Discount Rate for the Residual Income Model Is
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The Appropriate Discount Rate for the Residual Income Model Is

Question 37

Question 37

Multiple Choice

The appropriate discount rate for the residual income model is:


A) weighted average cost of capital.
B) the risk-free interest rate.
C) the risk-free interest rate plus the market premium.
D) cost of common equity capital.

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