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The Walt Disnay Company would like to calculate its cost of equity. The company has a beta of 20. The market risk premium is 5%
- The Walt Disnay Company would like to calculate its cost of equity. The company has a beta of 20. The market risk premium is 5% and the risk free rate is 3%. Stock price today is $177.38, and it has paid the following dividends over the past 6 years.
| Year | Dividend |
| 2015 | $1.29 |
| 2016 | $1.37 |
| 2017 | $1.49 |
| 2018 | $1.62 |
| 2019 | $1.72 |
| 2020 | $1.82 |
- Calculate dividend growth rate. Express your answers in percentage form with two decimal places 0.00%.
- Calculate The Walt Disnay Companys Cost of Equity using dividend growth model. Express your answers in percentage form with two decimal places 0.00%.
- Calculate The Walt Disnay Companys Cost of Equity using the CAPM. Express your answers in percentage form with two decimal places 0.00%.
- Determine the cost of equity that you would use and explain why (1-2 sentences).
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A Handbook Of Mutual Fund Investing
Authors: Barry G Dolgin
1st Edition
1456489704, 978-1456489700
