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.
Choose the appropriate option to arrange the sentences in the correct order to form a meaningful paragraph.
A-To defend conservative values,
...A. outstanding loans by September 2018, so the end
B. to continue to rise to as high as 11.1% of total
C. to the bad loans mess seems nowh...
Given below are six sentences, out of which sentences A and F are in the correct position. Sentences B, C, D and E are in a jumbled order. Select the op...
Which of these should be the SECOND sentence after rearrangement?
Which of the following would be the FIRST statement after rearrangement?
1. With such a passive attitude, the very
P. to one that is inferior you will begin to
Q. moment you pass from a superior environment
...Which of the following would be FIFTH the statement after rearrangement?
Choose the appropriate option to arrange the sentences in the correct order to form a meaningful paragraph.
A-It requires physical endurance, whi...
Which sentence should come first in the paragraph?
Which of the following is the last (sixth) sentence if the passage?
