Locate ten organizations that currently pay a common stock

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An organization's cost of equity can be calculated in a variety of ways. Complete the following tasks:

• Locate ten organizations that currently pay a common stock cash dividend. Go to the Finance Web link provided in the Webliography, enter the ticker symbol of an S&P 500 company in the quote box, and see whether it indicates that the company pays a dividend.

• Calculate the organizations' cost of equity using the dividend yield plus growth rate approach and the security market line (SML) model approach.

• For each organization, show how the cost of equity differs based on the two approaches. Refer to the Web link Finance in the Webliography for information on beta of stocks. Submit your answers in a 2 page Microsoft Word document and your calculations in a Microsoft Excel sheet.

Reference no: EM13478298

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