Which of the following statement(s) is correct about cost of equity?
A. Where earnings, dividends, and equity share price all grow at the same rate, the cost of equity capital may be computed by the dividend growth method.
B. When the risk-free rate is added to the market rate of the return, risk premium for the stock is arrived.
The dividend growth model allows the cost of equity to be calculated using empirical values of dividends and market value of the share using the formula: re = D0(1 + g) / P0 + g where g is the growth rate of earnings. The risk premium is calculated as market rate of return less the risk-free rate. Risk premium is used in the CAPM model to calculate the cost of equity.
Single superphosphate contains:
Pradhan Mantri Fasal Beema Yojana started in which year?
Which tissue transporting carbohydrates from the leaves as a food supply for the production of energy in the cortex?
Which one of the following terminology for viruses which feed on bacteria?
Study of soil in relation to growth and development of plant is known as:
An example for minor millet crop is
Which of the following is/are an imperfect market?
Pineapple disease is associated with which crop?
Which programme was launched in the early 2000’s with the objective of providing expert advice on risk assessment of microbiological hazards in foods...
Golden rice is related to enhanced: