IP Cost of Capital Problem

45 q14 markeet price market yield 1200 72500 n7 1100

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Unformatted text preview: Market Yield 120.0 7.2500% N=7 110.0 7.1300% Pv = Price per bond 98.0 7.3800% PMT = - Coupon Market Yield 7.2533% FV = - PAR Amount Credit Spread .2533% 5 Cost of Equity Capital 13.56% ### 10% 12 3.6 Equity Capital Markets/Trading Desk Industry data: Beta Ind. 1.5 P/E 12 Mkt risk prem. 7.0% Risk free rate 4.0% Payout % 30.0% Div Yield 2.75% Q15 IPO Price PE Estimate $144.00 Q16 IPO Price Div Yield Estimate 130.91 Q17 Average IPO $137.45 Price Q18 K Div Disc Model 12.62% K=D/P+G Q19 K CAPM 14.50% K=Rf+B...
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This note was uploaded on 07/17/2013 for the course CBBU 1003 taught by Professor Prof.algreco during the Spring '11 term at Fordham.

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