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does any 1 knoe when cost of equity under capm n dividend valuation model are equal?
I am not sure, and stand subject to correction, but I believe that the two models do not generally give the same estimate of the cost of equity capital for the following reasons:
1.CAPM is a ‘normative’ or ‘ex ante’ model
DVM is a ‘positive’ or ‘ex post’ model2. CAPM is a single time period model
DVM is a multi time period model
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