Please provide detailed working for the following problems.
My answer is 10.50%
2. The company last dividend was $1.00. its dividend growth rate is expected to constant at 15% for 2 years, after which dividends are expected to grow at a rate of 10% forever. The company's required return (RS) is 12%
What is Company current stock price?
My answer to this question is $60.07
Assume that Beth Inc hired you as a consultant to help it estimate the cost of capital. You have been provided with the following data D0 = $1.20; P0 = $4000, and g=7% (constant) based on the DCF approach, what is Beth's cost of equity from retained earnings?
My answer is 10.54%
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Risk Free Rate: 5%
Required Return: 14%
Market Risk Premium: 6%
REQUIRED RETURN ON MARKET: 11.00%
Last Dividend: $1
Short-run Growth: ...
This solution helps with questions about capital budgeting.