The cost of raising copital through retained earnings is the cost of raising copital through issuing new common stock. The cost of equity using the CAPM approach The current risk free rate of return (rie) is 3.86% while the market risk premium is 6.63%. The Roosevelt Company has a beta of 0.92. Using the capltal asset pricing model (CAPM) approach, Roosevelt's cost of equity is The cost of equity using the bond yield plus risk premium approach The Hartison 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 equify - Harrison's bonds vield 10.28%, and the firm's analysts estimate that the firm's risk premium on its stock over its bonds is 4.956. Based on the bond-yleld-plus tisk-premium approach, Harrison's cost of internal equity is: 15.23% 14.47\% 19.04% 16.7590 The cost of equity using the discounted cash flow (or dividend growth) approach the firm's growth rate to be constant at 7.27\%6. Estimating the cost of equity using the difcounted cash flow (or dividend growth) approach, what is Ther's cost of Internal equaty? 16.7845 11.015 Tyler. Enterprises's stock is currently selling for $45.56 per share, and the firm expects its per-share dividend to be $2.35 in one year. Analysts project the firm's growth rate to be constant at 7.27%. Estimating the cost of equity using the discounted cash flow (or dividend groweh) approach, what is Tyler's cost of intemal equity? 16.78%11.81%13.05%12.43% Estimating growth rates It is often difficult to estmate the expected future dividend growth rate for use in estimating the cost of existing equity using the DCF of DG approach. in oeneral, there are three avallable methods to generste such on estimate: - Carcy forwatd a historical tealked ofowth rate, and apply it to the future. - Locate and apply an expected future growth rate prepared and published by security analysts.- - Use the retention growti model. () of ew. Tylers estimated prowth rate is