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Cost of Capital A firm with a book value of $15.60 per share and 100% dividend payout is expected to have a ROE of 15%
Cost of Capital
- A firm with a book value of $15.60 per share and 100% dividend payout is expected to have a ROE of 15% forever. Its cost of equity capital is 10%. Calculate its market value of equity using the abnormal earnings model.
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Managerial Accounting
Authors: Wendy M. Tietz, Louis Beaubien, Karen W. Braun
3rd Canadian edition
