Related to Checkpoint 14. and Checkpoint 143) (Cost of common equity) The common stock for...
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Related to Checkpoint 14. and Checkpoint 143) (Cost of common equity) The common stock for the Wetterbrand Corporation sells for $59.07, and the last vidend paid was 5231 Five years ago the tempel 5184 per share and dividends are expected to grow at the same annual rate in the future as they did over the past five years What is the estimated cost of common equity to the firm using the dividend growth modet? h. Herbrands CFO has and his financial analyst to imate the frescost of common equity using the CAPM as a way of validating the earlier calculations. The risk tree rate of interest currently 4 percent, the more premium is estimated to the 51 percent, and Heterbrandsto 73. What is your stimate of me fm's cost of common equy ting this method The estimated cost of common equity to the tim using the dividend growth modelin Round to two decimal place) b. Your estimate of the firm's cost of common cout using the CAP Round to two decat pace)
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