The cost of common stock equity may be estimated by using the
A) yield curve.
B) net present value method.
C) Gordon model.
D) DuPont analysis.

Question

Quizplus · Accepted Answer

The cost of common stock equity is commonly estimated by using the Gordon model, also known as the dividend discount model. This model takes into account the current dividend, expected growth rate of dividends, and the required rate of return on the stock.

The Cost of Common Stock Equity May Be Estimated by Using