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The firm's cost of retained earnings can be estimated using the CAPM equation as follows: rs=rRF+(RPM)bi=rRF+(rMrRF)bi Bond-Yield-Plus-Risk-Premium DCF The DCF approach for estimated the cost
The firm's cost of retained earnings can be estimated using the CAPM equation as follows: rs=rRF+(RPM)bi=rRF+(rMrRF)bi Bond-Yield-Plus-Risk-Premium DCF The DCF approach for estimated the cost of retained earnings, rs, is given as follows: rs=r^s=D1/P0+ Expected gL by security analysts, who regularly forecast growth rates of earnings and dividends. here, as is true for most decisions in finance. not round intermediate calculations. Round your answers to 2 decimal places. CAPM cost of equity: If you are equally confident of all three methods, then what is the best estimate of the firm's cost of equity
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