The current dividend of Electric Engineering (EE) is R1.05.The dividends are expected to grow at 6.5% forever.An analyst has estimated the required rate of return of Electric Engineering by making use of three different valuation methods.

Bond yield plus risk premium method10.4%

CAPM method11.2%

APT method9.8%

Indicate which method will yield the highest value for Electric Engineering.

• A.Bond yield plus risk premium method
• B.APT method
• C.CAPM method