Cost of Debt = Pre-tax Cost of Debt * (1 - Tax Rate)
Cost of Preferred Stock = (Cash Dividends) / (Net Proceeds of PS [i.e. gross proceeds - costs])
Cost of Retained Earnings:
Capital Asset Pricing Model (CAPM)
= Risk-Free Rate + (beta * [Market Rate - Risk-Free Rate])
Discounted Cash Flow Model (DCF)
= (Dividend at the end of YR 1 / Markte Value of CS ) + Growth Rate
Bond Yield Plus Risk Premium (BYRP)
= Pre-tax cost of LT debt + Market Risk Premium
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