Rs is the required return on common stock from an investors view or the cost of common

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Rs is the required return on common stock from an investors view or the cost of common stock from the company’s view. Rs can be calculated three ways.

Assume the current Rule of Thumb is a 4% difference between stock and debt required returns.

Use the Rd calculated above for McDonald’s bond to calculate the Rule of Thumb Rs.

Related Book For answer-question

Multinational Finance Evaluating Opportunities Costs and Risks of Operations

ISBN: 978-1118270127

5th edition

Authors: Kirt C. Butler

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Posted Date: Jan 25, 2019 08:49 AM

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Multinational Finance Evaluating Opportunities Costs and Risks of Operations

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