You wish to calculate the cost of equity for Telus. Go to finance.yahoo.com and enter the ticker

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You wish to calculate the cost of equity for Telus. Go to finance.yahoo.com and enter the ticker symbol “T.TO” to locate information on the firm’s stock, listed on the TSX. Locate the most recent price for Telus, the market capitalization, the number of shares outstanding, the beta, and the most recent annual dividend. Can you use the dividend discount model in this case? Go to bankofcanada.ca and follow the “Interest Rates” link to locate the yield on the three-month Treasury bills. Assuming a 4 percent market risk premium, what is the cost of equity for Telus using CAPM?

Cost Of Equity
The cost of equity is the return a company requires to decide if an investment meets capital return requirements. Firms often use it as a capital budgeting threshold for the required rate of return. A firm's cost of equity represents the...
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Related Book For  answer-question

Fundamentals of Corporate Finance

ISBN: 978-0071051606

8th Canadian Edition

Authors: Stephen A. Ross, Randolph W. Westerfield

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