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Musical Charts just paid an annual dividend of $2.75 per share. This dividend is expected to increase by 3.1 percent annually. Currently, the firm has
Musical Charts just paid an annual dividend of $2.75 per share. This dividend is expected to increase by 3.1 percent annually. Currently, the firm has a beta of 1.19 and a stock price of $34 a share. The risk-free rate is 4 percent and the market rate of return is 13 percent.
Calculate the cost of equity using the Dividend Growth Method.
RE =RE = %
Calculate the cost of equity using the Security Market Line approach.
RE =RE = %
What is the cost of equity capital for this firm?
RE =RE = %
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