Please give me instructions how to calculate this with a TI-BAII
You have gathered the following information about your firm:
Current Stock Price (Common) ==> $36
Forecasted Dividend (D1) ==> $2.01
Beta ==> 1.4
YTM on Debt ==> 9.59%
Coupon Rate on Debt ==> 5.86%
Treasury Bond Yield ==> 5.21%
Growth Rate on Dividends ==> 3.1%
Market Risk Premium (km - krf) ==> 5.1%
Risk Premium for our stock over our bonds ==> 5.8%
Based on this, estimate the cost of common stock financing based on the dividend valuation approach. Round to 2 decimal places in percentage terms.