The approach to computing the cost of equity financing which does not explicitly consider risk is called the:

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The Dividend Growth Model (also known as the Gordon Growth Model) calculates the cost of equity financing based on the expected dividends per share, the growth rate of these dividends, and the current market price of the stock. It does not explicitly factor in risk, unlike models such as the Capital Asset Pricing Model (CAPM) which directly incorporates risk through the beta coefficient.

The Approach to Computing the Cost of Equity Financing Which