Which model is typically used to estimate the cost of using external equity capital?
A)dividend valuation model
B)capital asset pricing model
C)arbitrage pricing theory model
D)rate of return on perpetuity model

Question

Quizplus · Accepted Answer

The dividend valuation model is typically used to estimate the cost of using external equity capital by considering the expected dividends and growth rate.

Which Model Is Typically Used to Estimate the Cost of Using