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Question 25 4 pts Suppose you must estimate the cost of equity for a firm, and you have the following data: rRF = 3%; rm
Question 25 4 pts Suppose you must estimate the cost of equity for a firm, and you have the following data: rRF = 3%; rm -rre = 6%; b = 0.7; D1 = $1.00; Po = $20.00; g = 6%; and ra = the firm's bond yield = 6.5%. What is this firm's cost of equity using the DCF approach? 9% O 7% 10% O 6% O 11% Suppose you must estimate the cost of equity for a firm, and you have the following data:rre = 3%; rm -rre = 6%; b=0.7; D1 = $1.00; Po = $20.00; g = 6%; and ro = the firm's bond yield = 6.5%. What is this firm's cost of equity using the CAPM approach? 9.7% 8.7% 13.4% 10.13% O 7.2%
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