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first drop down options: less than; greater than or equal to second drop down options: 15.53%, 14.83%, 18.36%, 14.12% third drop down options: 13.70%, 16.44%,

image text in transcribedfirst drop down options: less than; greater than or equal to

second drop down options: 15.53%, 14.83%, 18.36%, 14.12%

third drop down options: 13.70%, 16.44%, 15.07%, 17.13%

fourth drop down options: 14.96%, 13.85%, 11.08%, 11.63%

the required rate of return on retained earnings, it If a firm cannot invest retained earnings to earn a rate of return should return those funds to its stockholders. The current risk-free rate of return is 4.60% and the current market risk premium is 6.10%. Green Caterpillar Garden Supplies Inc. has a beta of 1.56. Using the Capital Asset Pricing Model (CAPM) approach, Green Caterpillar's cost of equity is Cute Camel Woodcraft Company is closely held and, as a result, cannot generate reliable inputs for the CAPM approach. Cute Camel's bonds yield 10.20%, and the firm's analysts estimate that the firm's risk premium on its stock relative to its bonds is 3.50%. Using the bond-yield-plus-risk- premium approach, the firm's cost of equity is The stock of Cold Goose Metal Works Inc. is currently selling for $25.67, and the firm expects its dividend to be $1.38 in one year. Analysts project the firm's growth rate to be constant at 5.70%. Using the discounted cash flow (DCF) approach, Cold Goose's cost of equity is estimated to be

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