What is the bond-yield-plus-risk-premium estimate for xyzs


1. What is the bond-yield-plus-risk-premium estimate for XYZ's cost of common equity?

"Bond yield + RP" premium 4%

market interest rate on XYZ's debt 10%

Bond-yield-plus-risk-premium estimate =

2. What is your final estimate for rs?

METHOD ESTIMATE

CAPM 14.20%

DCF 13.80%

rd + RP 14.00%

Solution Preview :

Prepared by a verified Expert
Accounting Basics: What is the bond-yield-plus-risk-premium estimate for xyzs
Reference No:- TGS02567283

Now Priced at $10 (50% Discount)

Recommended (91%)

Rated (4.3/5)