Question: Using 3 methods (dividend yield + growth rate, CAPM and bond yield + premium), calculate the cost of equity for Walmart corp. The current dividend
Using 3 methods (dividend yield + growth rate, CAPM and bond yield + premium), calculate the cost of equity for Walmart corp. The current dividend (D) is $2.16 and dividends are expected to grow by 2.5% per year. The stock is currently selling for $141.20. The beta is 48, risk free rate is 1% and the market risk premium is 8%. Their bonds are ylelding about 3.19%
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