2: The cost of capital method includes
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The cost of capital is generally the weighted average cost of capital. The weighted average cost of capital is the weighted averages of cost of equity and cost of debt. Risk-free rate and risk premium are two major building blocks for the calculation of cost of equity.
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The cost of capital is generally the weighted average cost of capital. The weighted average cost of capital is the weighted averages of cost of equity and cost of debt. Risk-free rate and risk premium are two major building blocks for the calculation of cost of equity.
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