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Calculate the cost for the current common stock investors. (a) Estimate the cost for common stock using the Gordon Model (dividend valuation model). (b) Calculate

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Calculate the cost for the current common stock investors. (a) Estimate the cost for common stock using the Gordon Model (dividend valuation model). (b) Calculate the cost of common stock using the Capital Asset Pricing Model. (c) Find the cost of common stock using Bond Risk Premium Approach. Calculate SCRPC's cost of capital when retained earnings is the source of common stock nancing and the Gordon Model estimate is used. Use current market values of the nancial instruments to determine the components weights (see Exhibit VI)

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