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please answer these two questions in detail Problem 4 (10 points) A firm has a beta of 1.2. The market return equals 14 percent and
please answer these two questions in detail
Problem 4 (10 points) A firm has a beta of 1.2. The market return equals 14 percent and the risk-free rate equals 6 percent. Compute the cost of common stock equity. Problem 5 (10 points) A firm has common stock with a market price of $25 per share and an expected dividend of $2 per share at the end of the coming year. The growth rate in dividends has been 5 percent. What is the cost of the firm's common stock equity Step by Step Solution
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