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nSuppose Powers Ltd has a beta of 0.9, the market risk premium is 5% and T-bill rate is 3.5%. The company just paid $1.8 dividend
nSuppose Powers Ltd has a beta of 0.9, the market risk premium is 5% and T-bill rate is 3.5%. The company just paid $1.8 dividend per share, and the dividends are expected to grow at a 5% annual rate indefinitely. If the stock sells for $50 per share, what is your best estimate of Powers cost of equity?
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