Estimating cost of equity using DGM *The company is Apple Inc.
Estimating Dividend Growth
Year	Dividend (from Yahoo)	Growth	1+g
Year 1
Year 2
Year 3
Year 4
Year 5
Current Price
Expected Dividend
Growth Estimate
Cost of equity
Estimating cost of equity using CAPM (SML)
Item	Source	Value
Risk free rate	Treasury Yield Curves
MRP	Damodaran
beta	Yahoo
Cost of equity
Cost of equity used in WACC can be one of the values calculated, average, or some other number, subjectively adjusted
Cost of equity used
Estimating Cost of Debt
Most recently issued bond data, or bond with longest maturity
Source	FINRA-Morningstar
Maturity
Coupon rate
Face Value
Price
Payments
Number of payments
PV
Payment
Future Value
Per period rate
Cost of debt (annual)
Item		Value
Value of Debt
Market Cap
Tax rate			You may assume 35%
WACC