the required rate of return on retained earnings, it If a firm cannot invest retained earnings to earn a rate of return greater than or equal to should return those funds to its stockholders. 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 Burris Company has a beta of 0.92. Using the capital Asset Pricing Model (CAPM) approach, Burris's cost of equity is 10.00% The cost of equity using the bond yield plus risk premium approach 8.5796 10.47% The Hoover Company is closely held and therefore, cannot generate reliable inputs with which cost of internal equity. Hoover's bonds yield 10.28%, and the firm's analysts estimate that the 4,95%. Based on the bond-yield-plus-risk-premium approach, Hoover's cost of Internal equity CAPM method for estimating a company's premium on its stock over its bonds is 9.5296 18:23 16.75 15.239 14.479 The cost of equity using the discounted cash flow (or dividend growth) approach Kirby Enterprises's stock is currently selling for $25.67 per share, and the firm expects its per-share dividend to be $1.38 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 for dividend growth) approach, what is Kirby's cost of internal equity? 10.55% 13.88 11.104