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Eaton Electronic Company's treasurer uses both the capital asset pricing model and the dividend valuation model t compute the cost of common equity (also referred
Eaton Electronic Company's treasurer uses both the capital asset pricing model and the dividend valuation model t compute the cost of common equity (also referred to as the required rate of return for common equity). Assume: a. Compute Ki (required rate of return on common equity based on the capital asset pricing model). (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) b. Compute Ke (required rate of return on common equity based on the dividend valuation model). (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
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