Question
A company has the following parameters related to its stock and firm. Beta: 1.1 Recent Dividend 1.05 dollars Dividend Growth Rate 4.5 percent Expected return
A company has the following parameters related to its stock and firm.
Beta:
1.1
Recent Dividend
1.05 dollars
Dividend Growth Rate
4.5 percent
Expected return on market
11.0 percent
Treasury Bills Yield
4.3 percent
Most recent stock price
64.00 dollars
What is the cost of equity using DDM? What is the cost of equity using SML?
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Contemporary Business Mathematics with Canadian Applications
Authors: S. A. Hummelbrunner, Kelly Halliday, Ali R. Hassanlou, K. Suzanne Coombs
11th edition
134141083, 978-0134141084
