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Musical Charts just paid an annual dividend of $5 per share. This dividend is expected to increase by 4.6 percent annually. Currently, the firm has

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Musical Charts just paid an annual dividend of $5 per share. This dividend is expected to increase by 4.6 percent annually. Currently, the firm has a beta of 1.94 and a stock price of $19 a share. The risk-free rate is 2.5 percent and the market rate of return is 16 percent. Calculate the cost of equity using the Dividend Growth Method Calculate the cost of equity using the Security Market Line approach Re-% What is the cost of equity capital for this tim? RE-% Allowed attempts: 3

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