Could you calculate the component cost of equity for a stock with nonconstant expected growth rate in dividends if you didn’t have the information necessary to compute the component cost using the CAPM? Why or why not?
Could you calculate the component cost of equity for a stock with nonconstant expected growth rate in dividends if you didn’t have the information necessary to compute the component cost using the CAPM? Why or why not?
You could try and adjust the constant growth model for initial periods of nonconstant growth, but doing so would require estimating the growth rate for all of the nonconstant growth periods
