Select one of the following companies Cardinal Health (CAH), . Please use the same firm you used for the bonds. Look up the information on their equity (www.finra.org). Please provide the following: share price, market capitalization, annual dividend, annual earnings per share (basic), return on equity and beta. Note: You can select a different firm with instructor approval.

a. Assume a long-term growth rate of 5%. Find the required return using the dividend discount model.

b. Risk: Assume a market risk premium of 6%. Use the 10-year Treasury bond yield as the risk-free rate. Use the capital asset pricing model to estimate the required return on the equity.

Share Price	Market Capitalization	Annual Dividend	Annual Earnings per Share (basic)	Return on Equity (5-year)	Return on Equity (TTM)	Beta (5-year)
$94.10	23.9579 Bil	1.98	-3.35	-14.10	172.46	0.78