Question
Which of the following statement(s) is correct about
cost of equity? A.     Where earnings, dividends, and equity share price all grow at the same rate, the cost of equity capital may be computed by the dividend growth method. B.     When the risk-free rate is added to the market rate of the return, risk premium for the stock is arrived.Solution
The dividend growth model allows the cost of equity to be calculated using empirical values of dividends and market value of the share using the formula: re = D0(1 + g) / P0 + g where g is the growth rate of earnings. The risk premium is calculated as market rate of return less the risk-free rate. Risk premium is used in the CAPM model to calculate the cost of equity.
Muga silkworm is reared on which of the following tree species?
Which chromosome model was proposed by Du Praw on the basis of observation made on Human Chromosome?
Which nematode behavior is characterized by a spiral shape in the habitus?
The time and temperature combination in plate pasteurization isÂ
With respect to probiotics, which of the following statements is INCORRECT?
Trans fats can be avoided by:
Pradhan Mantri Kisan Samman Nidhi (PM-KISAN), launched in 2019 is ____
Which of the following is the manufacturer of Mitsubishi Shakti tillers
 Given below are two statements:
Statement I
Two contiguous watersheds are mostly similar in characteristics
Statement II
...Which of the following helps to retain color of meat
