Question: 1. Compute TSM's cost of equity using the CAPM model. The risk-free rate is 1.5%, the beta is 2.5 , and the market premium is

1. Compute TSM's cost of equity using the CAPM model. The risk-free rate is 1.5%, the beta is 2.5 , and the market premium is 5%. 2. Compute TSM's cost of equity using the DDM model. The current price of TSM is $35.02 per share. The firm will pay the next dividend of $12 per share, and its dividend grows at 2%. 3. TSM has preferred stock that pays a $15 dividend per share with no maturity date. The current price of its preferred stock is $45 per share. The flotation cost is 2.5%. What is the cost of preferred stock

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