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Cost of Equity The camins, dividends, and stock price of Shelby Inc. are expected to grow t5 per year in the future, Shelby's common stock

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Cost of Equity The camins, dividends, and stock price of Shelby Inc. are expected to grow t5 per year in the future, Shelby's common stock sells for $28.00 per show, its last dividend was $2.29, and the company will pay a dividend of 12:31 at the end of the current year 2. Using the discounted cash flow proach, what is its cost of uity? Round your answer to two decimal places If the firm's beta is 1.7, the tree rates and the expected return on the market is 14, then what would be the firm's cost of equity based on the CAP proach Round your answer to two decimal places c. If there's bends can return of 10%, then what would be your estimate of using the over-con-bond yield busdentalis premium approach Round your answer to two decimal places in Use the midpoint of the risk premium angel d. On the basis of the results of parts through what would be your estimate of Sheby's cost of me Shelby vs cathrach a round your answer to two decimal places ebook Problem Walkthrough Problem 9-10 Cost of Equity The earnings, dividends, and stock price of Shelby Inc. we expected to grow per year in the future. Shelby's common stock sells for $28.00 per she, its last dividend was $2.29, and the company will pay a dividend of $2.31 at the end of the current year. a. Using the discounted cash flow approach, what is its cost of equity Round your answer to two decimal places. b. If the firm's beta is 1.7, the risk free rate is 7, and the expected return on the market is 1, then what would be the firm's cost of equity based on the CAP approach Round your answer to two decimal places c. If the firm's bonds earn a return of 10%, then what would be your estimate of using the overbond viel-plus-judgmentals premium approach Round your answer to two decimal places. Use the midpoint of the risk premium range) d. On the basis of the results of parts a through what would be your state of Sheby's cost of uit? Assume Shelly values cathroachelly Round your answer to two decimales

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