Question: please answer both, will like! Regarding cost of equity capital estimates computed using the SML approach, which of the following is false? Multiple Choice The

Regarding cost of equity capital estimates computed using the SML approach, which of the following is false? Multiple Choice The SML applies only to firms with stable dividend growth rates. To implement this approach the financial manager must estimate a market risk premium and a beta coefficient Like the dividend growth model SML generally relies on using the past to predict the future The quality of the estimate using the SMi approach is sensitive to the quality of the estimates for the input variables in the model Otwidend growth model, the SML estimate adjusts for risk The costs incurred by a company when it sells new issues of bonds or stocks are: Multiple Choice Required rates of return Costs of capital Costs of equity and debt Flotation costs Capital structure weights
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
