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this is 1 question, please answerit all asap, due soon 4. The cost of retained earnings It a tum cannot invest retained camings to earma

this is 1 question, please answerit all asap, due soon image text in transcribed
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4. The cost of retained earnings It a tum cannot invest retained camings to earma rate of return should recurn those funds to its stockholders. the fequired rate of refum on retained earrings, it The oost of equity using the CAPM approach captal asset pincing model (CAPN) dpprosch, Montoe's cost of equity is The cost of equity using the bond yleld plus risk premium approach The dackion Company is closely held and, therefore. cannot generate reliable inputs with which to use the capM method for estumating a company cost of intemal equity. lacisson's bonds yield 11.52%. and the firm's analysts estimate that the firm's risk premium on its stock over its bencs is 4.95N. Rbased on the bond-yield-plus-risk-premiam approach. Jackson's cost of internal equity is: 16,470 20.590 18.12+4 15.704 The cost of equity using the discounted cash flow (or dividend growth) approach Tucker Enteronsesy stock: 15 currenthy seiling for $32.45 pet share, and the firm expects its per-5hate dividend to be s1, 38 in one year, Analyats project the firmis growth rate to be constant at 7.27\%. Estimating the cost of equity using the diacounted cayh fiow (or divifend growth) apprasch, what is Tocker 1 cost of internal equity? 121045 74.405 15.5514 11. $24 Lstinsatine growth rates It is uhen dificiol to estimate the expected future dividend groweh rate for use in estinating the cost of existhg equity usting the bor or po aciproach. It qeneral, there are three avaltable methods to generate tiuch an estimages: - Carry torward a historical realized gromth rate, and apply icto the ruture - tocate and afply an espected future growth rate prepared and cublstied by securty onalyste: - Use the retention growth model

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