Suppose that you are a financial manager at a large international company. Your CEO (Chief
Executive Officer) wants to ask you a few questions related to corporate finance. Please see the
CEOs email to you.
– (Please answer my questions in simple terms (as simple as possible). Please note that I
did NOT take any finance course at university.)
– Question 2: In relation to the estimation of cost of equity, please compare the dividend
growth model and security market line approaches.
Answer the CEOs questions in a formal email. The format on the next page must be used.
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