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Please see the questions below and provide answers. Thank you. The cost of equity using the bond yield plus risk premium approach The Adan's Company

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Please see the questions below and provide answers. Thank you.

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The cost of equity using the bond yield plus risk premium approach The Adan's Company is closely held and, thereforer cannot generate reliable inputs with which to use the CAFM method for estimating a company's cost of internal equity. Adams's bonds yield 11.52%r and the firm's analysts estimate that the firm's risk premium on its stock oyer its bonds is 5.39. Based on the oyer-own-tiond-yieid judgmental risk premium approach, Adams's cost of internal equity is: C} 114.1% 0 19.15% 0 15.54% C} 2D.89% The cost of equity using the discounted cashflow (or dividend growth] approach Tucker Enterprises's stock is currently selling for $32.45 per share, and the firm expects its per-share dividend to he $1.33 in one year. Analysts project the firm's growth rate to he constant at 13%. Using the cost of equity using the discounted cashfl ow [or dividend growth) approach, what is Tucker's cost of internal equity? 12.1II% 11.52% 14.40% 15.55% 0000

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