Calculate cost of common equity for qualcomm

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Reference no: EM131585110

Qualcomm Inc. is a world leader in 3G and mobile technologies. Its most recent stock price was $63. Qualcomm just paid $0.90 as dividend, and this dividend is expected to grow at a 6% rate. The stock beta is equal to 1.6 and the expected return of the market is 12.3%. The treasury bill is providing a yield of 5.6%

Calculate cost of common equity for Qualcomm using all possible methods.

Are your results different when you change methods? Why?

What estimation would you use for Qualcomm’s common equity?

Reference no: EM131585110

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