The SML approach can be applied to more firms than the dividend growth model can.

Name: The SML approach can be applied to more firms than the dividend growth model can.
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The SML (Security Market Line) approach can be applied to any firm, regardless of whether it pays dividends, because it is based on the CAPM (Capital Asset Pricing Model) which uses beta to determine the expected return of a security. The dividend growth model, however, can only be applied to firms that pay dividends.

The SML Approach Can Be Applied to More Firms Than