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please please solve this Question in 30 minutes QUESTION 25 20 Target Corporation (TGT) has a price of $112 and will issue a dividend of
please please solve this Question in 30 minutes
QUESTION 25 20 Target Corporation (TGT) has a price of $112 and will issue a dividend of $2.64 next year. It has a beta of 0.76 the risk-free rate is 3.45%, and the market risk premium is estimated to be 5.0%. At what rate do you need to expect Target 's dividends to grow to get the same equity cost of capital using both CAPM and the Constant Dividend Growth Model? [Hint: First calculate the equity cost of capital using CAPM. then use that number to calculate the expected dividend growth rate.] a. 4.89 b.5.25 O C.3.71 O d. 2.46Step by Step Solution
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