What is the Model commonly used to calculate the cost of equity (common stocks)? a. Black...

What is the Model commonly used to calculate the cost of equity (common stocks)?

a. Black and Scholes Pricing Model

b. Arbitrage Pricing Model

c. Capital Asset Pricing Model

d. Miller and Modigliani Model

Expert Solution

Correct answer is option C

CAPM is used to calculate cost of equity

balck sholes is used to calculate price of options

Arbitrage asset pricing model and MM approach is not used in calclating cost of equity

jeff jeffy answered 2 years ago

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What is the Model commonly used to calculate the cost of equity (common stocks)? a. Black...

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