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Problem #8 Stock in Bezos Industries has a beta of 0.80. The market risk premium is 6 percent while Treasuries are currently yielding 3.0 percent.

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Problem #8 Stock in Bezos Industries has a beta of 0.80. The market risk premium is 6 percent while Treasuries are currently yielding 3.0 percent. Bezos Industries' most recent dividend was $2.50 per share, and dividends are expected to grow at a 5 percent annual rate indefinitely. The stock sells for $62.00 a share, What is the estimated cost of equity using the average of the CAPM approach and the dividend discount approach

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