DROPDOWN OPTIONS: 1) Less than / greater than or equal to 2) 11.84% / 9.11%...
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DROPDOWN OPTIONS:
1) Less than / greater than or equal to
2) 11.84% / 9.11% / 10.02% / 9.57%
3) 14.70% / 17.64% / 13.96% / 16.17%
4) 12.98% / 12.36% / 11.74% / 15.45%
4. The cost of retained earnings the shareholders' required rate of return, it should If a firm cannot invest retained earnings to earn a rate of return return those funds to its stockholders. The current risk-free rate of return is 3.80% and the current market risk premium is 6.10%. Blue Hamster Manufacturing Inc. has a beta of 0.87. Using the Capital Asset Pricing Model (CAPM) approach, Blue Hamster's cost of equity is Fuzzy Button Clothing Company is closely held and, as a result, cannot generate reliable inputs for the CAPM approach. Fuzzy Button's bonds yield 10.20%, and the firm's analysts estimate that the firm's risk premium on its stock relative to its bonds is 4.50%. Using the bond-yield-plus-risk- premium approach, the firm's cost of equity is The stock of Cute Camel Woodcraft Company is currently selling for $45.56, and the firm expects its dividend to be $2.35 in one year. Analysts project the firm's growth rate to be constant at 7.20%. Using the discounted cash flow (DCF) approach, Cute Camel's cost of equity is estimated to be
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