Bond yield plus risk premium now use a third model to


BOND YIELD PLUS RISK PREMIUM: Now use a third model to estimate the expected return on equity. Estimate rS using the bond yield plus risk premium approach. You should be able to find the company’s cost of debt in the footnotes to the financial statements. The current equity risk premium is 6%.

Company is Apple Inc.

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Financial Management: Bond yield plus risk premium now use a third model to
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