2. Use one of these estimates for the cost of equity: a. The constant-dividend-growth valuation model, given
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2. Use one of these estimates for the cost of equity:
a. The constant-dividend-growth valuation model, given the current price, current dividend, and the 5-year dividend growth rate.
b. The CAPM, using the U.S. Treasury bill rate as your risk-free rate (www.bondsonline.com). Find the company's beta, and use the historical market risk premium, 7.6%, from Table 11-1.
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Related Book For
Fundamentals Of Corporate Finance
ISBN: 9780073382302
6th Edition
Authors: Richard A Brealey, Stewart C Myers, Alan J Marcus
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