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Barton Industries estimates its cost of common equity by using three approaches: the CAPM, the bond - yield - plus - risk - premium approach,
Barton Industries estimates its cost of common equity by using three approaches: the CAPM, the bondyieldplusriskpremium approach, and the DCF model. Barton expects next year's annual dividend, D to be $ and it expects dividends to grow at a constant rate g The firm's current common stock price, P is $ The current riskfree rate, rRF; the market risk premium, RPM and the firm's stock has a current beta, b Assume that the firm's cost of debt, rd is The firm uses a risk premium when arriving at a ballpark estimate of its cost of equity using the bondyieldplusriskpremium approach. What is the firm's cost of equity CAPM cost of equity: Blank Bond yield plus risk premium: Blank DCF cost of equity: Blank What is your best estimate of the firm's cost of equity? Blank Round your answers to decimal places.
Barton Industries estimates its cost of common equity by using three approaches: the CAPM, the bondyieldplusriskpremium approach, and the DCF model. Barton expects next year's annual dividend, D to be $ and it expects dividends to grow at a constant rate g The firm's current common stock price, P is $ The current riskfree rate, rRF; the market risk premium, RPM and the firm's stock has a current beta, b Assume that the firm's cost of debt, rd is The firm uses a risk premium when arriving at a ballpark estimate of its cost of equity using the bondyieldplusriskpremium approach.
What is the firm's cost of equity
CAPM cost of equity: Blank
Bond yield plus risk premium: Blank
DCF cost of equity: Blank
What is your best estimate of the firm's cost of equity? Blank Round your answers to decimal places.
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