Answer:
The cost of equity using the DCF method: 4.39%.
The cost of equity using the SML method: 15.01%.
Explanation:
a. The cost of equity using the DCF method:
We have: Current stock price = Next year dividend payment / ( Cost of equity - Growth rate) <=> Cost of equity = Next year dividend payment/Current stock price + Growth rate = 0.3 x 1.04/80 + 4% = 4.39%.
b. The cost of equity using the SML method:
Cost of equity = Risk free rate + beta x ( Market return - risk free rate); in which Risk free rate is rate on T-bill.
=> Cost of equity = 6.3% + 1.3 x ( 13% -6.3%) = 15.01%.
Welfare payments are governments subsidies that provide financial aid to those who cannot care for themselves. Some are meant to be temporary aid like TANF, SNAP, and day care programs. Others like programs for the aged, blind, and disabled may be given for the remainder of their lives.
Hope this helps.
To be able to fix the thing that are broken and to communicate with each other
<span>Privacy protection in the United states is much less stringent than in Europe.
Stringent is another word for strict. European privacy protection laws are much more strict than those in the United States. Privacy protection refers to the means of protecting your privacy and companies are not allowed to give out personal </span>information without confirmation they are allowed to do so.