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market share BUSI... D Question 15 10 pts The CFO of Lenox Industries hired you as a consultant to help him estimate the cost of
market share BUSI... D Question 15 10 pts The CFO of Lenox Industries hired you as a consultant to help him estimate the cost of capital. You have obtained the following data: Tim Atter Risk-free rate = 3.50% Beta = 1.35 Market Risk Premium = 5.00% Dividend payout next period - D1 = $2.75 Current stock price = Po = $35.00 Growth rate = g = 4.00% 1. What is cost of equity of the firm using dividend discounted model? 2. What is cost of equity of the firm using CAPM method? 3. Based on dividend discounted model, if firm is expected that the dividend payout for the next period will be only $2.00 per share as well as the expected growth of the company will be 5.50%. What is the new firm's cost of equity? Edit View Insert Format Tools Table 12pt Paragraph : OCT 22 tv 1) MacBook ALC 80 808 F4 DII F3 5 F6 F7 DD F9 F8 $ yo
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