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.
LCM of two numbers is 5 times their HCF. The product of the numbers is 4500. What will be the maximum possible difference between the numbers?
- The total and the difference of L.C.M and H.C.F of two numbers are 432 and 96. If one of the numbers is 24, what is the other number?
How many factors does the number 675 have in total?
Find the HCF of 244 and 118.
Find the greatest number which when divide 69,103 & 171 leave a same remainder 1 in each case?
Two numbers are in the ratio 4:7. The product of their H.C.F. and L.C.M. is 5488. The sum of the numbers is:
Find the highest common factor (HCF) of (15/4) , (10/9) and (25/6)
The least number which when divided by 16, 32 and 48 leave remainder 4, 20 and 36 respectively is?
The HCF of two numbers is 12. Which one of the following can never be their LCM?
- Calculate the number of factors of 480.