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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 5.75%. The Burris

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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 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 10.07% The cost of equity using the bond yield plus risk premium approach The Adams Company is closely held and therefore, cannot generate reliable inputs with which cost of internal equity Adams's bonds yield 11.52%, and the firm's analysts estimate that the Based on the bond-yield-plus-risk-premium approach, Adams's cost of internal equity is CAPM method for estimating a company's remium on its stock over its bonds is 4.95% 9.15% 19.75% ooo 16.47% 18.12 15.65% The cost of equity using the discounted cash flow or dividend growth ) approach Ford Enterprises's stock is currently selling for $32.45 per share, and the firm expects pershare dividend to be $138 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 or dividend growth) approach, what is Ford's cost of internal equity 9.47% 10.47% 300 111 G50-32199 & 4@ x 9W 14 15 16 17 18

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