Question: ( 5 ) What is the bond - yield - plus - risk - premium estimate for Coleman's cost of common equity? Bond yield +

(5) What is the bond-yield-plus-risk-premium estimate for Coleman's cost of common equity?
"Bond yield + RP" premium
4%
rs,=
What is your final estimate for rs?
\table[[METHOD,ESTIMATE],[CAPM,],[DCF,],[rd+ RP,],[Average,]]
(6) Coleman estimates that if issues new common stock, the flotation cost will be 15%. Coleman
% Flotation cost
Net proceeds after flotation
rs
(7) What is Coleman's overall, or weighted average, cost of capital (WACC)? Ignore flotation costs.
\table[[wd,30%,7.50%
Find the answers to #5 and #7 what are the values of the average and WACC respectively?
 (5) What is the bond-yield-plus-risk-premium estimate for Coleman's cost of common

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