Describe characteristics that differentiate debt and equity

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1. Describe two characteristics that differentiate debt and equity.

2. Do you think value networks or the external value chain is a more useful model for defining e-marketing strategy? ?

3. Towson, Inc. has a beta of 0.97. The market risk premium is 10% and T-bills currently yield 5.5%. Towson's most recent dividend was $1.55 per share, and dividends are expected to grow at a 7% annual rate indefinitely. The stock sells for $32 a share. What is the estimated cost of equity, the average of the CAPM and DDM ?

Reference no: EM132063920

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