can you explain your answer?

17.7995 19.4046 10.174 20.214 The cost of equity using the discounted cashi llow (or dividend growth) approach what is loknson t coat af inernal equitr? 10,444 11. Dite. The cost of ralsing capital through retained eamings is the cost of raising capital through issuing new common stock. The cost of equity using the CAPM approach The current risk-free rate of retum (ric) is 4.23% while the market tisk premium is 6.17%. The D'Amico Company has a beta of 1.56. Using the capital asset pricing model (CApM) approach, Dhaico's cost of ectity is The cost of equity using the discounted cash flow (or dividend growth) approach Johioton Crterpristsis stock is currentiy setiling for 145.56 per sture, and the firm expects its pervathare dividend to be $1.38 in one year. Analysts briefect the firm's growth rate to be conctark at 5.725. Estimating the cost of eouty utitig this discounted cash flow (or dividend groweh) approach, what li johnson's cost of internal weuitv? 2.756 10.944 11.514 19.4076 16.1745 20.214 The cost of equity using the discounted cash flow (or dividend growth) approach Johnson Enterprises's stock is currently selling for $45.56 per share, and the firm expects its per-thare dividend to be $1.38 in one yeac Analysts project the firm's growth rate to be constant at 5.724. Estimating the cost of equity using the discounted cash flow (or dividend orowth) approsch, what is Johnsen's cost of hternal equity? 2.75% 10.04: 11.814 9.1944 R stimatino growth rates It is eften diflitit to estimate the expected fiture dividend gronth rate for use in estimating the cost of existing equity using the DCF or DG approach. In oeneral, there are three avalable rithodi to generate such an estimate: - Catre forward a hestarical realued gronth rate, and aosly it to the future. - Locate and apply un expected future growth rate prepared and pebblisked by tecurity analysts. - Use the retention growth model. Scosose bohnece iz ourreotiv distributing 457 , of its eamings in the form of cath dividends. It has alio historically generated an average return on visuty (6cif) of 22\%. Sohnstoi) estimated grooth rate is The wacc is used as the discount rate to evaluate varlous capital budgeting prolects. However, it is important to realize that the wacC is an approbriate discount rate only for a project of ayerage risk. Analrze the cost of capital stuations of the following company cases, and answer the specific questions that finance profecsionats need to address. Consider the case of Turnbull Co, Tumbul ca, has a target copital structure of 45% debt, 4% preferred stock; and 51% common equity, ft has a before-tax cost of debt of 11.1%, and its cost of preferred stock is 12.25. th Turnbult can raise all of its equity cavital from retained eamings, its cost of common equity will be 14.74. However, if it is necessary to ralse new common equity, it will carry a cost of 10.8%. Hits current tax rate is 25%, how much Higher will Turbeults weighted average cost of capital (Wacc) be if it has to raise additional common equity decimal places.) 1.10s 1.254 1.444 1.075 4tet it a befort-tes cost of 10.24. 530,00