Dividend discount model to estimate the cost of equity

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Reference no: EM13804487

When using the dividend discount model to estimate the cost of equity, it is important to

a) use a short-or intermediate-term government security as the risk-free rate.

b) accurately estimate the rate of dividend growth

c) accurately calculate the firm's beta or use an appropriate proxy

d) adjust the discount rate for projects with greater than average risk

Reference no: EM13804487

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