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When Calculating the Component Cost of Equity, What Two Ways

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When calculating the component cost of equity, what two ways can it be calculated, and which way is better and why?


Definitions:

Stratification

The hierarchical arrangement of individuals or groups in a society based on factors like wealth, power, and social status, leading to inequality in opportunities and rewards.

Social Hierarchy

A system of ranking individuals or groups in a society based on various factors such as wealth, power, or prestige.

Forbes’s Asia

A business magazine franchise focusing on Asia, offering analysis and insights related to business, finance, economics, and investment in the Asian region.

Social Stratification

The hierarchical arrangement of individuals in a society based on wealth, power, and social status.

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