Options for #1:

-greater than or equal to

-less than

Options for #2:

-9.91%

-10.90%

-12.88%

-10.41%

Options for #3:

-18.13%

-15.95%

-13.77%

-14.50%

Options for #4:

-11.74%

-12.36%

-12.98%

-16.69%

4. The cost of retained earnings 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 0.87. 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 11.50%, and the firm's analysts estimate that the firm's risk premium on its stock relative to its bonds is 3.00%. 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 $45.56, and the firm expects its dividend to be $2.35 in one year. Analysts project the firm's growth rate to be constant at 7.20%. Using the discounted cash flow (DCF) approach, Cold Goose's cost of equity is estimated to be