21. (8%) Facts of ABC Corp.: TRF = 4%, Do = $2, ra = 8%, TM...
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21. (8%) Facts of ABC Corp.: TRF = 4%, Do = $2, ra = 8%, TM = 10%, Po= $20, b = 1.2, g = 6%, judgmental risk premium of the stock over the bond= 3%. Based on the above facts: What should be the cost of retained earnings of ABC Corp.? Use the three approaches discussed in class, and give the rationale for your cost of retained earnings. 21. (8%) Facts of ABC Corp.: TRF = 4%, Do = $2, ra = 8%, TM = 10%, Po= $20, b = 1.2, g = 6%, judgmental risk premium of the stock over the bond= 3%. Based on the above facts: What should be the cost of retained earnings of ABC Corp.? Use the three approaches discussed in class, and give the rationale for your cost of retained earnings.
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Answer rating: 100% (QA)
To calculate the cost of retained earnings using the three approaches well consider the following information TRF Riskfree rate 4 Do Dividend per shar... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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