a. (1) If you own 2 percent of the stock of Abacus, what is your dollar return
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a. (1) If you own 2 percent of the stock of Abacus, what is your dollar return if the company has net operating income of $360,000 and the overall capitalization rate of the company, ko, is 18 percent? (2) What is the implied required rate of return on equity?
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