The Recommended Model to Estimate the Cost of Ordinary Shares

question 21

Multiple Choice

The recommended model to estimate the cost of ordinary shares for a company is

• A) a one-stage constant growth model.
• B) a multistage growth model.
• C) the CAPM.
• D) none of the above.

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Definitions:

Random Chance

The occurrence of events without any predictable order or pattern, often used to describe outcomes in statistical events or experiments.

Likert Scale

A psychometric scale commonly involved in research that employs questionnaires, used to represent people's attitudes, opinions, or perceptions quantitatively.

Personality Questionnaire

A psychological assessment tool used to evaluate the personality traits and characteristics of an individual.

Normal Distribution

A statistical distribution that is symmetric around the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.