Question: please answer the first one as well, thanks! The current risk-free rate of return (ne) is 3.86% while the market risk premium is 6.63%. The

please answer the first one as well, thanks!
please answer the first one as well, thanks! The current risk-free rate
of return (ne) is 3.86% while the market risk premium is 6.63%.

The current risk-free rate of return (ne) is 3.86% while the market risk premium is 6.63%. The Wilson Company has a beta of 0.92. Using the capitai asset pricing model (CAPM) approach, Wilson's cost of equity is 10.956% The cost of equity using the bond yield plus risk premium approach The Adams Company is closely held and, therefore, cannot generate reliable inputs with which to use the CAPM method for estimating a company's cost of internal equity, Adams's bonds yield 10.28%, and the firm's analysts estimate that the firm's risk premium on its stock over its bonds is 4.95% Based on the bond-yield-plus-risk-premium approach, Adams's cost of internal equity is: 16.75% 19.049 18.289 15.234 The cost of equity using the discounted cash flow (or dividend growth) approach Pierte Enterprises's stock is currently selling for 545.56 per share, and the firm expects its per-share dividend to be $1.38 in one year. Analysts project the firm's growth rate to be constant at 7.27%. Using the cost of equity using the discounted cash Now (or dividend growth) approach, what is Pierce's cost of Internal equity? 12.85% 10.30% 10.82% 13.914 Pierce Enterprises's stock is currently selling for 545.56 per share, and the firm expects its per-share dividend to be $1.38 in one year. Analysts project the firm's growth rate to be constant at 7.27%. Using the cost of equity using the discounted cash flow or dividend growth approach, what is Pierce's cost of internal equity? 12.88% O 10.30% 10.82% 13.91% Estimating growth rates It is often a cult to estimate the expected future dividend growth rate for use in estimating the cost of existing equity using the DCF or DG approach In general, there are three available methods to generate such an estimate; Carty forward a historical realized growth rate, and apply it to the future. . Locate and apply an expected future growth rate prepared and published by security analysts: Use the retention growth model Suppose Plerce is currently distributing 40% of its earnings in the form of cash dividends. It has also historically generated an average return on equity (ROE) of 14%. Pierce's estimated growth rate is

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