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Calculate Cost of Common Equity using CAPM (Capital Asset Pricing Model), DCF (Discounted Cash Flow Model) and Bond Yield Risk Premium CAPM data: VECs beta

Calculate Cost of Common Equity using CAPM (Capital Asset Pricing Model), DCF (Discounted Cash Flow Model) and Bond Yield Risk Premium

CAPM data:

VECs beta = 1.2

The yield on T-bonds = 3%

Market risk premium = 7%

DCF data:

Stock price = $27.08

Last years dividend (D0) = $2.10

Expected dividend growth rate = 4%

Bond-yield-plus-risk-premium data:

Risk premium = 5.5%

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