Tragikeyes
New member
The expected growth 7% per year in the future. The stock sells for $23 per share, its last dividend was $2.00, and the company will pay a dividend of $2.14 at the end of the current year.
1.If the firms bonds earn a return of 12%, what will rs be using the bond yield plus risk premium approach? (Hint: use the midpoint of the risk premium range)16%
2.On the basis of the results of parts a through c, what would you estimate Shelby’s cost of equity to be?
1.If the firms bonds earn a return of 12%, what will rs be using the bond yield plus risk premium approach? (Hint: use the midpoint of the risk premium range)16%
2.On the basis of the results of parts a through c, what would you estimate Shelby’s cost of equity to be?