Question: could use some help with this! thanks 6. The cost of retained earnings if a firm cannot Invest retained earnings to earn a rate of

could use some help with this! thanks
could use some help with this! thanks 6. The cost of retained
earnings if a firm cannot Invest retained earnings to earn a rate

6. The cost of retained earnings if a firm cannot Invest retained earnings to earn a rate of return should return those funds to its stockholders the required rate of return on retained earnings, it The cost of equity using the CAPM approach The yield on a three-month T-bill is 2.74%, and the yield on a 10-year T-bond is 3.86%. the market risk premium is 6.63%. The Wilson Company has a beta of 0.92. Using the Capital Asset Pricing Model (CAPM) approach, Wilson's cost of equity is The cost of equity using the bond yield plus risk premium approach The Harrison 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. Harrison's bonds yield 10.28%, and the firm's analysts estimate that the firm's risk premium on its stock over its bonds in 4.95%. Based on the bond yield-plus-risk premium approach, Harrison's cost of internal equity is: 19.04% O 16.75% 18.2890 O 15.23% h 09: Assignment - The Cost of Capital 4,95%. Based on the bond yield-plus-risk premium approach, Harrison's cost of internal equity 19.04% 16.75% 18.289 15.239 The cost of equity using the discounted cash flow (or dividend growth) approach Ford Enterprise's stock is currently selling for $45.56 per share, and the firm expects its pershare dividend to be $2.33 in one year. Analysts project the firm's growth rate to be constant at 7:27%. Osing the cont of equity using the discounted cash flow for dividend growth) oproach, what is Ford cost of internal equity? 13.05% 15,569 O 16.78% 12.43%

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