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Which of the following is not a generally accepted approach for calculation of cost of equity?

a) CAPM

b) Dividend Discount Model

c) Price-Earnings Ratio

d) Rate of Preferencial Dividend Plus Risk

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Question added by Mir Mujtaba Ali , Internal Audit Manager , Confidential
Date Posted: 2015/02/03
AZHAR NAWAZ
by AZHAR NAWAZ , Assistant Manager Accounts , Quantum Geoservices (Pvt) Ltd

Option D is correct Options

FITAH MOHAMED
by FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

d) >>>>Rate of Preferencial Dividend Plus Risk

Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

c) Price-Earnings Ratio

is the answer

Divyesh Patel
by Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town

I will go for option D. Thank you

Waqas Raza Khan
by Waqas Raza Khan , Accountant , Cold Store Group of Saudi Arabia

Answer: Option D................

Hany Sabry
by Hany Sabry , Finance Manager , Coffee Adress

i would like to say that D is the right answer.

Habibullah Syed
by Habibullah Syed , Accountant , Farasia Maritime Agencies Pvt Ltd

D......................................

Faheem Akhtar
by Faheem Akhtar , Operation Executive , Sounbulamills FZE

my answer is for the above mention question is D

Alex Al Yazouri
by Alex Al Yazouri , General Manager , Al Mushref Cooperative Society

d)>>>>>>>>> Rate of Preferencial Dividend Plus Risk

Thanks to the experts.

imran Noor -
by imran Noor - , Audit Officer , Auditor General of Pakistan

The correct option is (d) ..........................................

Shabbar Hussain
by Shabbar Hussain , Group Finance Controller , GULF CRAFT INC CO LLC

answer should be D as this is not an approach for calculating cost to equity

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