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please use excel and elaborate how you got your answers this info may or may not be useful thw only onw im not sure about
please use excel and elaborate how you got your answers
this info may or may not be useful thw only onw im not sure about is the one in question marks [the dividend in timw 0 is $4.71 and the stock price is $214.31
you estimate a constant growth rate of 2.70% and a required rate of 7.00%
the expected rate of return of mcdonald's common stock if it grows at the constant rate of 4.96%
the value of mcdonald's common stock using the constant growth model $112.49?]
question id likw help with:
You are estimating the cost of capital at McDonalds the first step is estimating the cost of common stock.
If McDonald issues new common stock, and underwire will charge 1.70%(of the stock price to issue the shares.)
McDonalds stock has a beta of 0.65 The risk rate is 1.50%
And the expected market risk premium is 5.00%
A) what is the estimated net proceeds at McDonalds common stock?____________
B) what is the cost of newly issued common stock at McDonalds using the constant growth model?________
C) what is McDonalds cost of common stock using retained earnings in the constant growth model?_________
D) what is McDonalds cost of common stock using the CAPM model? ___________
E) what is the best estimate Of the cost of common stock McDonalds if McDonalds has plenty of funds of retained earnings and you do not estimate constant growth?______________
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