The required rate of return necessary for the dividend valuation model can be estimated using
A)the Capital Asset Pricing Model.
B)comparisons to the rates of return on stocks of similar risk.
C)a subjective assessment of the return required over and above less risky investments such as government bonds.
D)any or all of the above.

Question

Quizplus · Accepted Answer

The required rate of return for the dividend valuation model can be estimated using any or all of the methods mentioned: the Capital Asset Pricing Model (CAPM), comparisons to similar risk stocks, or a subjective assessment over less risky investments.

The Required Rate of Return Necessary for the Dividend Valuation