Would a company like Kroger have any extra premiums? I'm doing a DCF model on them.
I have Rf at 2.25%, B at 1.04, and the market risk premium at 5.5%. This yield a cost of equity of approx 7.76%
I want to tack on an extra premium on the end, similar to a size premium or a country risk premium, and I want it to represent the recent competition risks in the food retailer space.
Does anyone know how to calculate this? or what I can use to represent this premium? Thanks
Submitted September 17, 2017 at 12:28AM by EBulvid http://ift.tt/2fcBOfH
