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Which one of the following is not used to estimate cost of equity capital ?

The External yield criterion is not a recognized method for estimating a company's cost of equity capital. The standard methods used to estimate the cost of equity (K_e) are…

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Which one of the following is not used to estimate cost of equity capital ?

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Correct answer A

The External yield criterion is not a recognized method for estimating a company's cost of equity capital. The standard methods used to estimate the cost of equity (K_e) are the Dividend Valuation plus Growth model (D_1/P_0 + g), the Equity Capitalisation / Earnings-Price approach, and the Capital Asset Pricing Model (CAPM).

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  • UGC NET Commerce

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