Using the Capital Asset Pricing Model (CAPM), discuss and calculate the cost of new common stock (Ks).
What would the dividend yield as a percentage (i.e., per dividend payment divided by the book value of a share of stock) today and a year from now if the dividend growth rate is 12%?
What is the after-tax cost as a percentage (e.g., interest rate) of new debt today?
What are your recommendations for raising capital based on your answers to the above questions plus considering other factors (e.g., current and potential changes in the economy locally, regionally, nationally and worldwide, changes in the demand and/or supply plus cost of materials, skilled labor, management and/or leadership, changes in interest, tax, inflation and/or supply of investment capital)?
Submission Details:
Submit your 3 to 4 page paper in Microsoft Word, using APA style.