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 11.52%, and the firm's analysts estimate that the firm's risk premium on its stock over its bonds is 5.89%. Based on the bond-yield-plus-risk-premium approach, Adams's cost of internal equity is:

16.54%

19.15%

17.41%

21.76%

Tyler Enterprises's stock is currently selling for $32.45 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 5.72%. Using the cost of equity using the discounted cash flow (or dividend growth) approach, what is Tyler's cost of internal equity?

9.97%

9.47%

10.47%

13.46%

The yield on a three-month T-bill is 3.29%, and the yield on a 10-year T-bond is 4.67%. the market risk premium is 6.17%. The Roosevelt Company has a beta of 1.56. Using the Capital Asset Pricing Model (CAPM) approach, Roosevelt's cost of equity is?