Business Studies, asked by PranjalLodha, 3 months ago

cost of equity can be estimated by

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Answered by krishnendu212

Answer:

The cost of equity can be calculated by using the CAPM (Capital Asset Pricing Model) CAPM formula shows the return of a security is equal to the risk-free return plus a risk premium, based on the beta of that security or Dividend Capitalization Model (for companies that pay out dividends).

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