Question
1.Explain the three varying characteristics of common shares. 2.What are flotation costs? 3.How is cost of common equity computed for no growth stock? for constant
1.Explain the three varying characteristics of common shares.
2.What are flotation costs?
3.How is cost of common equity computed for no growth stock? for constant growth stock?
4.What is a dividend yield?
5.Define the following terms used in Capital Asset Pricing Model (CAPM) to compute for cost of equity: a.Risk-free rate
b.Stock's Beta Coefficient
c.Market risk premium
6.How is cost of equity under Bond Yield Plus Risk Premium Approach computed?
7.How is weighted average cost of capital (WACC) computed?
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Managerial Accounting Tools for business decision making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
6th Edition
978-0470477144, 1118096894, 9781118214657, 470477148, 111821465X, 978-1118096895
