Problem
a. Why is there a cost to retained earnings in investor-owned businesses?
b. What are the three methods commonly used to estimate the cost of equity?
c. Is the risk premium in the CAPM the same as the risk premium in the debt cost plus risk premium model?
d. How would you estimate the cost of equity (fund capital) for a not-for-profit business?
e. How would you estimate the cost of equity for a small investor owned business?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.