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Keep the Highest / 4 The cost of retained earnings The cost of raising capital through retained earnings is the cost of raising capital through
Keep the Highest
The cost of retained earnings
The cost of raising capital through retained earnings is
the cost of raising capital through issuing new common stock.
The current riskfree rate of return is and the current market risk premium is Green Caterpillar Garden Supplies Inc. has a beta of
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
and the firm's analysts estimate that the firm's risk premium on its stock relative to its bonds is Using the bondyieldplusrisk
premium approach, the firm's cost of equity is
The stock of Cold Goose Metal Works Inc. is currently selling for $ and the firm expects its dividend to be $ in one year. Analysts project the
firm's growth rate to be constant at Using the discounted cash flow DCF approach, Cold Goose's cost of equity is estimated to
be
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