Question

NEED EXCEL SOLUTION: EXCEL FORMULA ONLY PLEASE 1. Cost of Equity: Stock quote link Stock price:...

NEED EXCEL SOLUTION: EXCEL FORMULA ONLY PLEASE

1. Cost of Equity:
Stock quote link
Stock price: $                                           65.95
Dividend: $                                             1.66
Key statistics link
Beta:                                                  1.43
Shares outstanding:                                   148,610,000
Analysts' estimates link
5-year dividend growth: 6.85%
Bond center link:
Risk-free rate: 0.13%
Market Risk Premium: 7.00%
Cost of Equity: Use DDM: r = D/P + g
Cost of Equity: Use CAPM: r = rf + B * (Rm - Rf)

Please provide Excel solutions for the above two problems using the formula given.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

I have used the given formulaes.


Please do rate me and mention doubts,if any, in the comments section.

Add a comment
Know the answer?
Add Answer to:
NEED EXCEL SOLUTION: EXCEL FORMULA ONLY PLEASE 1. Cost of Equity: Stock quote link Stock price:...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • NEED EXCEL SOLUTION: EXCEL FORMULA ONLY PLEASE Calculate WACC: Debt Weight: 60.00% Equity Weight: 40.00% Tax...

    NEED EXCEL SOLUTION: EXCEL FORMULA ONLY PLEASE Calculate WACC: Debt Weight: 60.00% Equity Weight: 40.00% Tax rate: 35.00% WACC: Use CAPM Cost of Equity The below information is given. I need to solve for WACC. Cost of Equity: Stock quote link Stock price: $                                           65.95 Dividend: $                                             1.66 Key statistics link Beta:                                                  1.43 Shares outstanding:                                   148,610,000 Analysts' estimates link 5-year dividend growth: 6.85% Bond center link: Risk-free rate: 0.13% Market Risk Premium: 7.00% Cost of Equity: Use DDM:...

  • Choose an industry and a stock within that industry and attempt to compute the return on...

    Choose an industry and a stock within that industry and attempt to compute the return on equity using the CAPM model PLEASE USE NETFLIX You will need to cite the sources of your risk free rate (Rf), the average return for the industry (Rm) , and the beta factor you used. (b) Please set this up as a small excel model so variables may be altered.

  • The cost of equity using the CAPM approach The current risk-free rate of return (RF) is...

    The cost of equity using the CAPM approach The current risk-free rate of return (RF) is 4.23%, while the market risk premium is 6.63%, the Burris Company has a beta of 0.92. Using the Capital Asset Pricing Model (CAPM) approach, Burris's cost of equity is The cost of equity using the bond yield plus risk premium approach The Lincoln Company is closely held and, therefore, cannot generate reliable inputs with which to use the CAPM method for estimating a company's...

  • The cost of equity using the CAPM approach The current risk-free rate of return (rRF) is...

    The cost of equity using the CAPM approach The current risk-free rate of return (rRF) is 3.86%, while the market risk premium is 5.75%. The Jefferson Company has a beta of 0.92. Using the Capital Asset Pricing Model (CAPM) approach, Jefferson's cost of equity is 9.15% 9.61% 10.98% 10.07% 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...

  • in an excel format, can you please solve the following! thanks! Calculate the weighted Average Cost...

    in an excel format, can you please solve the following! thanks! Calculate the weighted Average Cost of Capital Given Rate Below (60 points) Show Work Cost of Capital Weighted Average Bonds Preferred Stock Internal Equity Common Stock % of Equity 25.00% 10.00% 10.00% 55.00% Remember Flotation Costs and Taxes Par Value Market Price Flotation Costs Coupon Rate Maturity $1.001.00 $1.100.00 S100.00 X% 10 years Tax Rate 30.01% Preferred Stock Remember Flotation Costs Dividend Selling Price Flotation Costs $6.00 S85 0...

  • termediate Prablems COST OF COMMON EQUITY The future earnings, dividends, and common stock price of Carpetto...

    termediate Prablems COST OF COMMON EQUITY The future earnings, dividends, and common stock price of Carpetto Technologies Inc. are expected to grow 7% per year. Carpetto's common stock currently sells for $23.00 per share; its last dividend was $2.00; and it will pay a $2.14 dividend at the end of the current year. a. Using the DCF approach, what is its cost of common equity? b. If the firm's beta is 1.6, the risk-free rate is 9%, and the average...

  • The cost of equity using the CAPM approach The current risk-free rate of return (TRF) is...

    The cost of equity using the CAPM approach The current risk-free rate of return (TRF) is 4.67% while the market risk premium is 6.63%. The Jefferson Company has a beta of 0.92. Using the capital asset pricing model (CAPM) approach, Jefferson's cost of equity is 11.3085% The cost of equity using the bond yield plus risk premium approad 10.779 11.847% The Harrison Company is dosely held and, therefore, cannot generate relis cost of internal equity. Harrison's bonds yield 11.52%, and...

  • The cost of raising capital through retained earnings is the cost of raising capital through issuing new common stock....

    The cost of raising capital through retained earnings is the cost of raising capital through issuing new common stock. The cost of equity using the CAPM approach The yield on a three-month T-bill is 3.12%, and the yield on a 10-year T-bond is 4.23%, the market risk premium is 5.75%. The Monroe Company has a beta of 0.78. Using the Capital Asset Pricing Model (CAPM) approach, Monroe's cost of equity is The cost of equity using the bond yield plus...

  • The cost of raising capital through retained earnings is new common stock. the cost of raising...

    The cost of raising capital through retained earnings is new common stock. the cost of raising capital through issuing The cost of equity using the CAPM approach The yield on a three-month T-bill is 2.74%, and the yield on a 10-year T-bond is 3.86%, the market risk premium is 6.17%, the D'Amico Company has a beta of 1.56. Using the Capital Asset Pricing Model (CAPM) approach, DAmico's cost of equity is The cost of equity using the bond yield plus...

  • The cost of equity using the CAPM approach The yield on a three-month T-bill is 2.74%,...

    The cost of equity using the CAPM approach The yield on a three-month T-bill is 2.74%, and the yield on a 10-year T-bond is 3.86%-the market risk premium is 6.63%. the Jefferson Company has a beta of 0.78. Using the Capital Asset Pricing Model (CAPM) approach, Jefferson's cost of equity is The cost of equity using the bond yield plus risk premium approach The Lincoln Company is closely held and, therefore, cannot generate reliable inputs with which to use the...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT