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Homework answers / question archive / A company's cost of equity can be estimated using: & the capital asset pricing model of the yield to maturity None of the options are correct the dividend discount model or the average coupon rate the capital asset pricing model or the dividend discount model

A company's cost of equity can be estimated using: & the capital asset pricing model of the yield to maturity None of the options are correct the dividend discount model or the average coupon rate the capital asset pricing model or the dividend discount model

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A company's cost of equity can be estimated using: & the capital asset pricing model of the yield to maturity None of the options are correct the dividend discount model or the average coupon rate the capital asset pricing model or the dividend discount model.

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A company's cost of equity can be estimated using:-

  • The capital asset pricing model or the dividend discount model

According to CAPM:-

cost of equity = risk free rate+ Beta* market risk premium

According to Dividend Discount model:-

cost of equity= ( D1/P0) + g

in this D1 is the expected dividend per share

P0 is the current stock price

and g is the dividend growth rate

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