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*Mind-Numbing Pharmaceuticals stock supports a beta of 1.21. The expected return on the market is 10.50 percent and Treasury bills are yielding 3.65 percent.
*Mind-Numbing Pharmaceuticals stock supports a beta of 1.21. The expected return on the market is 10.50 percent and Treasury bills are yielding 3.65 percent. The company pays a quarterly dividend of $0.44/share, and the dividends are forecast to grow at 4 percent annually. If the stock currently is priced at $43/share, what is the Average Estimate of the Mind-Numbing's Cost of Equity?
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First lets calculate the dividend growth rate g using the given information The dividends are foreca...
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Corporate Finance Core Principles And Applications
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
6th Edition
1260571122, 978-1260571127
