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Please send me step-by-step instructions for TI-BAII Plus You have gathered the following information about your firm: Current Stock Price (Common) ==> $46 Forecasted Dividend
Please send me step-by-step instructions for TI-BAII Plus
You have gathered the following information about your firm:
Current Stock Price (Common) ==> $46
Forecasted Dividend (D1) ==> $2.82
Beta ==> 0.7
YTM on Debt ==> 5.39%
Coupon Rate on Debt ==> 7.89%
Treasury Bond Yield ==> 5.98%
Growth Rate on Dividends ==> 4.6%
Market Risk Premium (km - krf) ==> 7%
Risk Premium for our stock over our bonds ==> 3.5%
Based on this, estimate the cost of common stock financing based on the dividend valuation approach. Round to 2 decimal places in percentage terms
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