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Sherwin-Williams considers raising capital by issuing new equity. What is the firm's cost of common equity if the stock beta is 3? The T-Bond rate
Sherwin-Williams considers raising capital by issuing new equity. What is the firm's cost of common equity if the stock beta is 3? The T-Bond rate is 3% and the S&P 500 return is 15%.
Sherwin-Williams has been paying dividends for a long time. The firm paid $5.7 last year (D0 = $5.7). It is expected that the firm will increase dividends at a constant growth rate of 3%. The stock is currently selling for $128. What is the cost of common equity?
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