Under what situations would you want to use the CAPM approach for estimating the component cost of equity? The Constant-Growth model? 1.48K viewsJanuary 7, 2017 0 Darshita6.14K January 7, 2017 0 Comments Under what situations would you want to use the CAPM approach for estimating the component cost of equity? The Constant-Growth model? 1 Answer ActiveVotedNewestOldest 0 Darshita6.14K Posted January 7, 2017 0 Comments You would want to use the CAPM when you can estimate the firm’s beta with a good deal of certainty: you would only want to use the constant-growth model if the firm’s stock is expected to experience constant dividend growth Register or Login
