Question
A company's stock has a beta of 1.2 and currently sells for $75 per share. The company just paid a dividend of $4 and future
A company's stock has a beta of 1.2 and currently sells for $75 per share. The company just paid a dividend of $4 and future dividends are expected to grow at 2% annually. Assume the risk-free rate is 3.75% and the expected return on the market is 8.5%. What is the company's cost of equity capital?
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Personal Finance
Authors: E Thomas Garman, Raymond E Forgue
10th Edition
143903902X, 9781439039021
