(Solved):   When calculating the weighted average cost of capital, the cost of equity needs to be take ...

 

When calculating the weighted average cost of capital, the cost of equity needs to be taken into account. Discuss three (3) methods that can be used to calculate the cost of equity. Ensure that your discussion entails: - An in-depth discussion on the cost of equity method; - Formulas used to calculate the cost of equity; - Clear examples on how to calculate the cost of equity by using three different methods; - The advantages and disadvantages of using the specific methods; and - Which method you would recommend to businesses and why.