For both academics and practitioners, the pendulum has swung over to the _______ for estimating the cost of equity capital.

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21-04-2022
Business

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For both academics and practitioners, the pendulum has swung over to the _______ for estimating the cost of equity capital.

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ayfat23 ayfat23 · Answer 1 · 2022-04-28T11:28:45+02:00

For both academics and practitioners, pendulum has swung over to the capital asset pricing model for estimating the cost of equity capital.

What is capital asset pricing model?

The capital asset pricing model serves as model that show the financial markets price securities and thereby determine expected returns on capital investments.

Therefore, this model provides a way for estimating the cost of equity capital.

Learn more about capital asset pricing model at;

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