Question
(Cost of equity) MAM just declared a dividend of $4.8 per share of common stock. The current stock price is $31 per share. The dividend
(Cost of equity) MAM just declared a dividend of $4.8 per share of common stock. The current stock price is $31 per share. The dividend is expected to increase at a rate of 7% per year for the future. The beta of its common stock is 0.2 and the market risk premium is 7.6%.The risk-free rate=2.9%. According to the SML(CAPM) equation, the cost of the equity capital is _%.
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Economics Of Money Banking And Financial Markets
Authors: Frederic Mishkin
5th Edition
0134734203, 978-0134734200
