Which of the Following Factors in the Discounted Cash Flow $\frac { \tilde { \mathrm { D } } _ { 1 } } { \mathrm { P } _ { 0 } }$

question 25

Multiple Choice

Which of the following factors in the discounted cash flow (DCF) approach to estimating the cost of common equity is the least difficult to estimate?

• A)Expected growth rate, g
• B)Dividend yield, \(\frac { \tilde { \mathrm { D } } _ { 1 } } { \mathrm { P } _ { 0 } }\)
• C)Required return, rs
• D)Expected rate of return, \(\hat { r } _ { s }\)
• E)All of the above are equally difficult to estimate.