Cost of equity Cost of Debt ethod 1 25.11% (According to dividend growth model) 2.31% ethod 2 3.11% (According to CAPM model approach) 4.57% If you have to select one of the methods from above, which one would you choose and why? If you would be prospective investor, would you invest in Almarai Co. shares or bonds? pecify the reason.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Cost of equity
Cost of Debt
Method 1
25.11%
(According to dividend growth model)
2.31%
Method 2
3.11%
(According to CAPM model approach)
4.57%
a. If you have to select one of the methods from above, which one would you choose and why?
b. If you would be prospective investor, would you invest in Almarai Co. shares or bonds?
Specify the reason.
Transcribed Image Text:Cost of equity Cost of Debt Method 1 25.11% (According to dividend growth model) 2.31% Method 2 3.11% (According to CAPM model approach) 4.57% a. If you have to select one of the methods from above, which one would you choose and why? b. If you would be prospective investor, would you invest in Almarai Co. shares or bonds? Specify the reason.
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