Since Equity Cash Flows Are Uncertain, the Following Approaches Are

Multiple Choice

Since equity cash flows are uncertain, the following approaches are used in estimating the cost of equity:

A) CAPM and the dividend growth model.
B) risk premiums, the dividend growth model, and the accounting beta method.
C) the dividend growth model, risk premiums, and CAPM.
D) All of the methods mentioned above are used, but CAPM is unquestionably the best.