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Indicate which method will yield the highest value

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Question - The current dividend of Electric Engineering (EE) is R1.05. The dividends are expected to grow at 6.5% forever. An analyst has estimated the required rate of return of Electric Engineering by making use of three different valuation methods.

Bond yield plus risk premium method 10.4%

CAPM method 11.2%

APT method 9.8%

Indicate which method will yield the highest value for Electric Engineering.

A. Bond yield plus risk premium method

B. APT method

C. CAPM method

Reference no: EM133039621

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