=+b. One year later, your broker offers to sell you additional shares of Azure at $73. The

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=+b. One year later, your broker offers to sell you additional shares of Azure at $73.

The most recent dividend paid was $3.21, and the expected growth rate for earnings remains at 7%. If you determine that the appropriate risk premium is 6.74%

and you observe that the risk-free rate, RF, is currently 5.25%, what is the firm’s current required return?

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Principles Of Managerial Finance

ISBN: 9781292261515

15th Global Edition

Authors: Chad J. Zutter, Scott Smart

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