Question: I need help solving problems 2 & 3 on excel. Please, thank you! Google purchasing Motorola mobility TOROLA Google Checkout 1- In the previous 5
I need help solving problems 2 & 3 on excel. Please, thank you!


Google purchasing Motorola mobility TOROLA Google Checkout 1- In the previous 5 years, Google paid an annual dividend as follows: Year Dividends 2011 2.7 2010 2.5 2009 2008 1.8 2007 1.5 Google is expected to pay a dividends of $3 in the next year (2012). What is the cost of equity of Google if its current stock price is $90? 2.2 1 2- As a technology-based firm, Google has a high beta of 1.4. if the risk-free rate of return is 5% and the market risk premium is 3%, calculate the cost of equity of Google using the capital asset pricing model (CAPM)? 3- As a financial analyst, you know that both DGM and the CAPM used in # 1 and # 2 above can be inaccurate, so you decided to calculate the average cost of equity of google. What is the average cost of equity of Google
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