Question
A)Find Cost of Common Equity using CAPM using below given data Beta (Systematic Risk) 2.06 Market Return (%) 13 Risk Free Rate (%) 5 Cost
A)Find Cost of Common Equity using CAPM using below given data
Beta (Systematic Risk) 2.06
Market Return (%) 13
Risk Free Rate (%) 5
Cost of EquityAnswer ?
B)Find Cost of Common Equity using Dividend Discount Model (DDM)
Current Dividend9
Growth Rate (%)6
Current Stock Price54.58
Cost of EquityAnswer ?
C)Find Cost of Debt using below given data
Face Value of Bond100
Year to Maturity5
Copoun Rate8
Current Bond Price67.58
Pre-Tax cost of debtAnswer ?
D)Calculate WACC using following data
Weight of Equity (%)60
Weight of Debt (%)40
Tax Rate (%)22
WACC using CAPM Cost of Equity (A)?
WACC using Dividend Discount Model (B) ?
WACC using Average of CAPM and DDMA ?
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