Question
fill in blank: the total return on a security consists of two parts: (1)____ return, which is the part of the return expected by participants
fill in blank:
the total return on a security consists of two parts: (1)____ return, which is the part of the return expected by participants in the financial markets; and the (2)____ part is not. The risk of an asset comes from the (3)____part.
the dividend growth model specifies that share price (p0) is given by the following: p0= (4)________ Re= (5)_______. Only (6)____ is not directly observable. Deficiencies of this approach to computing the cost of equity captial are 1. it is based on an assumption of (7)_____; 2. the value of (8) _____ must be estimated; and 3. the model does not explicitly consider (9)____.
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