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Three different ways to estimate cost of common equity: CAPM, DCF(discounted dividend model), and Own-bond-yield-plus-risk-premium. Do you have to estimate cost of common equity using
Three different ways to estimate cost of common equity: CAPM, DCF(discounted dividend model), and Own-bond-yield-plus-risk-premium. Do you have to estimate cost of common equity using all three methods and use the average as cost of common equity? or should you use just one? why or why not?
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