In calculating the cost of common stock equity, the model having the stronger theoretical foundation is
A. the constant growth model.
B. the Gordon model.
C. the variable growth model.
D. the capital asset pricing model.
Answer:D
In calculating the cost of common stock equity, the model having the stronger theoretical foundation is
A. the constant growth model. B. the Gordon model. C. the variable growth model. D. the capital asset pricing model.