Im trying to compute the Whole foods cost of equity. I WAS TOLD THE FORMULA =RISK FREE RATE OF 30YR TREASURE BONDS * EQUITY BETA* LONG TERM MARKET RISK PREMIUM. Can I use the equity market risk premium instead for last part of equation?

Question

Im trying to compute the Whole foods cost of equity.    I WAS TOLD THE FORMULA =RISK FREE RATE OF 30YR TREASURE BONDS * EQUITY BETA* LONG TERM MARKET RISK PREMIUM.  Can I use the equity market risk premium instead for last part of equation?

anonymous · Answer

Implied ERP on August 1, 2013= 5.46% (normalized cash yield); 5.46% (Trailing 12 month cash yield)?   Is this correct