Which of the Following Can Be Used to Estimate the Firm's

question 86

Multiple Choice

Which of the following can be used to estimate the firm's cost of equity?

• A)the capital asset pricing model (CAPM).
• B)the dividend growth model
• C)the historic market yield.
• D)management approximation.
• E)Any or all of the above

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Definitions:

Descriptive Statistics

Statistical methods that summarize and organize data to describe its main features, often through the use of charts, graphs, and summary measures.

Significance Test

A statistical method used to determine if the results of an experiment are likely to be due to chance or if they are significant.

P Value

A statistical measure that helps scientists determine the significance of their research results, indicating the probability of observing the results by chance.

Standard Deviation

A statistical measure of the dispersion or variability within a data set, indicating how spread out the numbers are from the mean.