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Riddle Industries has the following parameters related to its stock and firm. Beta: 1.1 Recent Dividend 1.05 dollars Dividend Growth Rate 4.5 percent Expected return
Riddle Industries has the following parameters related to its stock and firm.
| Beta: | 1.1 |
| Recent Dividend | 1.05 dollars |
| Dividend Growth Rate | 4.5 percent |
| Expected return on market | 11.0 percent |
| Treasury Bills Yield | 4.3 percent |
| Most recent stock price | 64.00 dollars |
What is the cost of equity using DDM? What is the cost of equity using SML?
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Fundamentals of Financial Management
Authors: Eugene F. Brigham
Concise 9th Edition
1305635937, 1305635930, 978-1305635937
