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bunkhouse electronics is a recently incorporated firm that makes electronic entertainment systems. it's earnings and dividends have been growing at a rate of 30%. the

bunkhouse electronics is a recently incorporated firm that makes electronic entertainment systems. it's earnings and dividends have been growing at a rate of 30%. the current dividend yield is 2%. it's beta is 1.2. the market risk premium is 8% and the risk free rate is 4%> use the CAPM to estimate the firm's cost of equity. now use the constant growth model to estimate the cost of equity.

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