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Cost of capital help plz True False The cost of equity using the CAPM approach The yield on a three-month T-bill is 2.74%, and the

Cost of capital help plz
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True False The cost of equity using the CAPM approach The yield on a three-month T-bill is 2.74%, and the yleld on a 10-year T-bond is 3.86%, the market risk premium is 5.75%. The Allen Company has beta of 0.92. Using the Capital Asset Pricing Model (CAPM) approach, Allen's cost of equity is The Kennedy Company is closely held and, therefore, cannot generate reliable inputs with which to use the CAPM method for estimating a company's cost of internal equity. Kennedy's bonds yleld 10.28%, and the firm's analysts estimate that the firm's risk premium on its stock over its bonds is 4.95%. Based on the bond-yield-plus-risk-premium approach, Kennedy's cost of interral equity is: 16.75%14.47%18.28%15.23% 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-share dividend to be $2.35 in one year, Analysts project the firm's growth rate to be constant at 7.27%. Using the cost of equity using the discounted cash flow (or dividend growth) approach, what is Johnson's cost of internal equity? 11.8195 15.54% 13.05% 12.43%

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