The cost of common stock equity may be measured using either the constant-growth valuation model or the capital asset pricing model.

Question

Quizplus · Accepted Answer

Both the constant-growth valuation model and the CAPM can be used to estimate the cost of common stock equity. The choice of method depends on various factors such as the availability of historical data, market conditions, and the risk profile of the company.

The Cost of Common Stock Equity May Be Measured Using