Nube Style Calculate WACC using SML approach to calculate Cost of Equity Question Discovent Company has just paid $1.2 dividend payment and they promise to increase dividend payments by 3%. The current stock price is $18 and has 500,000 outstanding shares Calculate cost of equity, based on DGM. The company has a beta of 0.8 and market risk premium is 8%. Risk free rate is 2. Calculate cost of equity, based on SML Discoverit has only one bond outstanding with a maturity period of 15 years. The bond makes semiannual coupon payments and the coupon rates is in the selling price of the 4 bond is $1,067 and face is $1,000. The tax rate is 21% and the company has 2,500 bonds outstanding. Calculate before and after-tax cost of debt. 5 Calculate WACC using SML approach to calculate Cost of Equity 6 Calculate WACC using Dividend Growth Model approach to calculate Cost of Equity 7 10 11 12 13 14 16 Question UE Te 9 O i Search