The cost of equity capital is equal to the risk free rate, Financial Management

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The cost of equity capital is equal to the risk free rate

The cost of equity capital is equal to the risk free rate plus an equity risk premium. In the US, over time that equity risk premium has averaged about 8.5% so that at a 3% Treasury rate, the cost of equity has averaged about 11.5%. The equity risk premium may vary from country to country. What are some factors that may account for such differences?

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Financial Management: The cost of equity capital is equal to the risk free rate

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