Problem: Estimate the cost of equity (expressed in percentages or in a decimal format) or the rate of return that Accuray's shareholders 'require'. Use the Capital Asset Pricing Model (CAPM) in order to estimate the rate of return that shareholders require on their investment. Show all calculations.
How would you go about finding the cost of equity using the dividend growth model or the arbitrage pricing theory for Accuray? Explain how you would go about doing these calculations and explain what kind of additional information you might need.
No equations/calculations needed for this part.