The cost of retained earnings If a firm cannot invest retained earnings to earn a rate of return ______ the required rate of return on retained earnings, it should return those funds to its stockholders. The cost of equity using the CAPM approach The yield on a three-month T-bill is 2.74%, and the yield on a 10-year T-bond is 3.86%. the market risk premium is 663%. the Wilson Company has a beta of 0.78. Using the Capital Asset Pricing Model (CAPM) approach, Wilson's cost of equity is ______. The cost of equity using the bond yield plus risk premium approach The Kennedy 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. Kennedy's bonds yield 10.28%, and the firm's analysts estimate that the firm's risk premium on its stock over its bonds is 3.55%. Based on the over-own-bond-yield judgmental risk premium approach, Kennedy's cost of internal equity is: 15.21% 13.83% 17.29% 13.14% The cost of equity using the discounted cash flow (or dividend growth) approach Grant enterprises stock is currently selling for exist45.56 per share, and the firm expects its per-share dividend to be exist1.38 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 (of dividend growth) approach, what is Grant's cost of internal equity? 8.31% 10.94% 8.75% 9.19%