Amazon has a beta of 0.6. The risk-free rate is 2.4% and the expected return on the S&P500 is 5%.

What is Amazon's cost of equity?


Now assume that the expected market risk premium is 5%. What is Amazon's cost of equity?

Jackson Holding has just paid an annual dividend of $0.45 per share. Analysts expect the firm's dividends to grow by 4% forever. Its stock price is $35.3.

What is the cost of equity from retained earnings?

Answer rating: 100% (QA)

To calculate Amazons cost of equity using the capital asset pricing model CAPM we need the riskfree ... View the full answer