The cost of equity using the CAPM approach The yield on a three month T bill is 3 12 , and the yield on a 10 year T bond is 4 23 the market risk premium is 5 75 The Allen Company has a beta of 1 56 Using the Capital Asset Pricing Model (CAPM) approach, Allens cost of equity is A 11 88 B 14 52 C 13 86 D 13 20 Mitchell Co has $2 7 million of debt, $2 5 million of preferred stock, and $1 2 million of common equity What would be its weight on common equity A 0 35 B 0 19 C 0 31 D 0 43 Hirshfeld Corporation's stock has a required rate of return of 10 25 , and it sells for $85 00 per share The dividend is expected to grow at a constant rate of 6 00 per year What is the expected year end dividend, D 1 A $3 61 B $3 41 C $3 81 D $3 71 E $3 51 Brushy Mountain Mining Company's coal reserves are being depleted, so its sales are falling Also, environmental costs increase each year, so its costs are rising As a result, the company's free cash flows are declining at the constant rate of 3 per year If its current free cash flow (FCF 0 ) is $7 million and its weighted average cost of capital (WACC) is 18 , what is the estimated value of Brushy Mountain's value of operations Do not round intermediate calculations Enter your answer in millions For example, an answer of $1 million should be entered as 1, not 1,000,000 Round your answer to two decimal places $ million

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The cost of equity using the CAPM approach: The yield on a three-month T-bill is 3.12%, and the yield on a 10-year T-bond is 4.23%.

The cost of equity using the CAPM approach: The yield on a three-month T-bill is 3.12%, and the yield on a 10-year T-bond is 4.23%. the market risk premium is 5.75%. The Allen Company has a beta of 1.56. Using the Capital Asset Pricing Model (CAPM) approach, Allens cost of equity is _________ A. 11.88% B. 14.52% C. 13.86% D. 13.20%

Mitchell Co. has $2.7 million of debt, $2.5 million of preferred stock, and $1.2 million of common equity. What would be its weight on common equity? A. 0.35 B. 0.19 C. 0.31 D. 0.43

Hirshfeld Corporation's stock has a required rate of return of 10.25%, and it sells for $85.00 per share. The dividend is expected to grow at a constant rate of 6.00% per year. What is the expected year-end dividend, D₁? A. $3.61 B. $3.41 C. $3.81 D. $3.71 E. $3.51

Brushy Mountain Mining Company's coal reserves are being depleted, so its sales are falling. Also, environmental costs increase each year, so its costs are rising. As a result, the company's free cash flows are declining at the constant rate of 3% per year. If its current free cash flow (FCF₀) is $7 million and its weighted average cost of capital (WACC) is 18%, what is the estimated value of Brushy Mountain's value of operations? Do not round intermediate calculations. Enter your answer in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answer to two decimal places.

$____________ million