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Estimate the cost of capital Estimate the Cost of Capital for Company XYZ based on the information below. Stock price: $50.00 Dividend: $1.60 Beta: 1.29

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Estimate the cost of capital

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Estimate the Cost of Capital for Company XYZ based on the information below. Stock price: $50.00 Dividend: $1.60 Beta: 1.29 Shares outstanding: 100,000,000 5-year dividend growth: 7.55% Risk-free rate: 0.60% Market risk premium: 7.00% Debt Information (bonds outstanding) Maturity YTM "Quoted Price" Book Value 3/15/2025 4.0% 99.00 $800,000,000 2/1/2027 4.5% 130.00 $200,000,000 9/1/2042 5.0% 95.00 $500,000,000 10/15/2044 5.5% 90.00 $900,000,000

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