In practice, the preferred method of estimating the cost of equity is the dividend discount model. the capital asset pricing model (CAPM). Arbitrage pricing models.
In practice, the preferred method of estimating the cost of equity is
| the dividend discount model. | ||
| the capital asset pricing model (CAPM). | ||
| Arbitrage pricing models. | ||
| Fama-French models. |
Based on financial theory, which of the statement is CORRECT regarding the estimation of a companys WACC?
| WACC should represent historical market conditions. | ||
| Whenever possible, you should use book-value weights when estimating WACC. | ||
| WACC should be forward looking. | ||
| For debt, you should consider the before-tax cost of debt. |
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Authors: André Dorsman, Özgür Arslan-Ayaydin, Mehmet Baha Karan
1st Edition
3319322664, 978-3319322667
