Examlex
Which of the following scales represents the less sophisticated level of measurement?
Dividend Growth Model
A model that estimates the value of a dividend-paying stock, based on the assumption that its dividends will continue to grow at a constant rate in the foreseeable future.
Cost of Equity
The return that investors expect for investing in a company's equity, representing the compensation for their risk.
SML Approach
Security Market Line approach; a graphical representation of the expected return of investments as a function of their systematic, non-diversifiable risk.
Cost of Capital
The rate of return that a company must earn on its investments to maintain its market value and satisfy its shareholders or debtholders.
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