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Clear steps are required thx Question 2 The stock of ZZ Ltd. has a beta of 1.5. The company just paid a dividend of $1.0,

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Clear steps are required thx
Question 2 The stock of ZZ Ltd. has a beta of 1.5. The company just paid a dividend of $1.0, and the dividend is expected to grow at 5% per year, indefinitely. The expected market return is 10%, and the risk-free is 5%. The most recent stock price for ZZ is $50. a. Calculate the cost of equity using the DDM method. b. Calculate the cost of equity using the SML method. c. Why are your estimates (in [a] and [b]) are so different

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