n this question you are required to extract financial information on Texas Instruments which can be found in its annual report. You should refer in

particular to Texas Instruments' 2019 consolidated financial statements (view link at the bottom). The notes to these statements may also be relevant.You are required to:

1) use two appropriate methods to calculate the cost of equity for Texas Instruments

ANSWER:

8/C 144 DDI INS DEL HOME END PGUP ve BACK W# O SPACE LOCK W E R T O 9 P HOME PGU 4 S D F 5 G H K ENTER 4 O a = > R . + B ( Rm - RF ) RE = = Equity Risk premium. Risk Free rate = => 1.641 paand Equity = => 3/0 pia RISKJ a premium Betci = =>1:12. CAPM = = > 1:64 + 1:12 ( 3 ) = =7 1:64+3:36= =750 16, Ke using dividend ( assuming no growth rate, ), Ke = => DIVIDEND CURRENT = =/3.6 -272686 PER SHARE / MARKET PRICE OF 133.89 SHARE8/C 144 DDI INS DEL HOME END PGUP ve BACK W# O SPACE LOCK W E R T O 9 P HOME PGU 4 S D F 5 G H K ENTER 4 O a = > R . + B ( Rm - RF ) RE = = Equity Risk premium. Risk Free rate = => 1.641 paand Equity = => 3/0 pia RISKJ a premium Betci = =>1:12. CAPM = = > 1:64 + 1:12 ( 3 ) = =7 1:64+3:36= =750 16, Ke using dividend ( assuming no growth rate, ), Ke = => DIVIDEND CURRENT = =/3.6 -272686 PER SHARE / MARKET PRICE OF 133.89 SHARE