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Question 15 1 pts Suppose the stock in Watta Corporation has a beta of 0.8. The market risk premium is 6 percent, and the risk-free
Question 15 1 pts Suppose the stock in Watta Corporation has a beta of 0.8. The market risk premium is 6 percent, and the risk-free rate is 3 percent. Watta's dividend will be $1.20 per share next year and the dividend is expected to grow at 6 percent indefinitely. The stock currently sells for $45 per share. What is Watta's cost of equity by the CAPM? % Question 16 1 pts Following #15, what is Watta's cost of equity by the dividend growth model? %
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