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Beta, Inc. maintains a debt-equity ratio of .78, has an equity cost of capital of 12%, and a debt cost of capital of 7%. Beta
Beta, Inc. maintains a debt-equity ratio of .78, has an equity cost of capital of 12%, and a debt cost of capital of 7%. Beta Inc's corporate tax rate is 38%, and its equity market value is $258 million. if the firm's free cash flow is expected to be $11 million in one year and will grow at a constant growth rate forever, what constant expected future growth rate in dividends is consistent with the firm's current market value of the equity?
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