The cost of equity using the bond yield plus risk premium approach The Jackson Company is closely held and, therefore, cannot generate reliable inputs with which to use the CAPM method for estimating a company's cost of internal equity. Jackson's bonds yield 11.52%, and the firm's analysts estimate that the firm's risk premium on its stock over its bonds is 3.55%. Based on the bond-yield-plus-risk-premium approach, Jackson's cost of internal equity is: 18.84% 14.32% 15.07% 18.08% The cost of equity using the discounted cash flow (or dividend growth) approach Ford Enterprises's stock is currently selling for exist32.45 per share, and the firm expects its per-share dividend to be exist2.35 in one year. Analysts project the firm's growth rate to be constant at 5.72%. Using the cost of equity using the discounted cash flow (or dividend growth) approach, what is Ford's cost of Internal equity? 12.96% 13.61% 16.20% 17.50%