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Irvestors eypect to recerve a dividend yiad, F4D1, phon a cacital goin, q, for a total expected retum. In geowth rates as projeded ty securisy

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Irvestors eypect to recerve a dividend yiad, F4D1, phon a cacital goin, q, for a total expected retum. In geowth rates as projeded ty securisy analyats, who regulory forecast orowth rates of eamings ard divibends. torm wephted averope of the three methods. Audgment is limportank and comes into ploy here, as is true for most dicisocs in finance. and the DCF model. Birton expects next year's annati devidend, Dy, to be st. 60 and is expects dividends to grow ot a constont rate 9 - 5.09. The firmis current 1. to. Assumie that the famis cost of debt, te is 9.27. The farm uses a 3 ist fhk premium when amiving at a balkork estimate of its cost at equity using the bond- CAPM cost of equalty? Bond yield plus tisk premium? Pof cost of eguity? What is pour best estimwate of the firmis cost of equity

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