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    Why cost of equity varies between companies

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    What factors explain why the cost of equity may differ between companies

    © BrainMass Inc. brainmass.com March 4, 2021, 6:19 pm ad1c9bdddf

    Solution Preview

    The cost of equity can be calculated in the following three ways.

    1. Dividend Discount Model - Here the dividend growth rate is used to find out the cost of equity. If the dividend growth rate is different, then ...

    Solution Summary

    The solution explains the reasons why cost of equity is different for different companies