Question: If you have full information available that will allow you to compute the cost of common equity three ways, which should you use? the average

If you have full information available that will allow you to compute the cost of common equity three ways, which should you use?
-
the average of all of them
the average of all of them
-
a weighted average that puts greater weight on the method the analyst is most confident of
a weighted average that puts greater weight on the method the analyst is most confident of
-
the highest cost approach to protect the firm
the highest cost approach to protect the firm
-
the lowest cost approach provides more options to the company
If you have full information available that will allow you to compute the cost of common equity three ways, which should you use? the average of all of them O a weighted average that puts greater weight on the method the analyst is most confident of o the highest cost approach to protect the firm o the lowest cost approach provides more options to the company
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
