Question: When should we use the CAPM/SML formula and the Dividend growth model ? What is the difference between the two formulas? ? The cost of

When should we use the CAPM/SML formula and the Dividend growth model ? What is the difference between the two formulas?

? When should we use the CAPM/SML formula and the Dividend growth model

The cost of equity is the return required by equity investors given the risk of the cash flows from the firm. There are two major methods for determining the cost of equity. 1. SML or CAPM Approach 2. Dividend growth model: 0 0

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