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9. A company paid a dividend of $1 per share last year. Its stock has a beta of 1.2 and the current market risk premium

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9. A company paid a dividend of $1 per share last year. Its stock has a beta of 1.2 and the current market risk premium is 8% and risk free rate is 2.5%. a) What's the company's cost of equity based on CAPM? b) If the Company decides to start increasing dividends by 5% per year for the foreseeable future, what is the value of the stock under DGM

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