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1) Dividends will grow at 4% going forward for Company A. The next years dividend that the Company will pay is $7.4 and the stock

1) Dividends will grow at 4% going forward for Company A. The next years dividend that the Company will pay is $7.4 and the stock sells for $32. What is the cost of equity for Company A?

2) If a company holds risk free debt only (no bond information given) and the Treasury Bill rate is 2.1%, then what is the cost of debt?

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