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The CAPM has an advantage over DDM because the CAPM: specifically considers a firms degree of operating leverage. explicitly adjusts for risk. ignores changes in
The CAPM has an advantage over DDM because the CAPM:
specifically considers a firms degree of operating leverage.
explicitly adjusts for risk.
ignores changes in the overall market over time.
is more simplistic.
applies to firms that pay dividends.
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Microeconomics: An Intuitive Approach With Calculus
Authors: Thomas Nechyba
2nd Edition
1305650468, 978-1305650466
