4,5

DEF Company's current stock price is $47. They plan to pay a dividend next year of $2, and the dividend is expected to grow at a rate of 3% per year. What is DEF's cost of equity? 4. a. c. 5.92% 7.26% b. 6.33% d. 8.09% The T-Bill rate is 4%, the market risk premium. is 5%, and Company B's beta is 1.2. According to CAPM, Company B's expected return is: 5. 9.50% 11.25% a. b. 10.00% d. 10.50% c